Accra (Ghana), Nov 2 (IANS): A government-owned heavy equipment company in Ghana has teamed up with India's BEML to distribute machinery and equipment in the West African country.

Hannah Tetteh, minister of trade and industry, said here Ghana Heavy Equipment Ltd. (GHEL) had been a distributor for Japanese company Komatsu but lost the business. The government has therefore helped the company team up with the Indian firm.

GHEL produces earth-moving equipment and other machinery for the mining, timber, agricultural, automobile, building and road construction industries within West Africa.

BEML (formerly Bharat Earth Movers Limited) was established in May 1964 for manufacture of rail coaches and mining equipment in Bangalore. The government of India owns 54 percent of its equity now and the remaining 46 percent is held by the public, financial institutions, foreign institutional investors, banks and employees.

Its major businesses include mining and construction. BEML's products are exported to more than 56 countries. The company made a turnover of Rs.3,558 crore in 2009-10.

Following this new deal, "GHEL has been able to enter the West African market with the provision of services and supply of spare parts", the minister said.

GHEL is currently operating in neighbouring Burkina Faso and Togo and has now put in place the necessary strategy to penetrate and establish its presence in other regions, she said.

Tetteh said Ghana has increased its trade with India over the past few years but was still looking for ways to increase the volume of trade through further negotiations.

She, however, dismissed reports that Ghana has received funding from India to build the capacity of small-scale business entrepreneurs.