Bharat Forge's (NSE:BHARATFORG, BOM:500493) aerospace business has signed a memorandum of understanding with the state government of Andhra Pradesh, India, to set up a marine gas turbine (MGT) repair, overhaul and indigenous development complex in Visakhapatnam, according to a filing to the Indian stock exchanges on Tuesday.

The company plans to set up private-sector complex over 80 acres within the Andhra Pradesh Defence Manufacturing Corridor, and will be co-located with the Naval Dockyard, INS Eksila, and Eastern Naval Command Headquarters

The first phase will cover a full MGT repair and overhaul complex. It includes a hot section restoration of blades, vanes and combustion liners, component manufacturing, NDE laboratory, and a 72-hour turnaround capability for the Naval Dockyard, Visakhapatnam.

Subsequently, in the second phase, the company will establish an MGT development and assembly hall, a full-spectrum hot test cell scalable across all propulsion ratings, the filing said.

The company's shares were down nearly 1% in recent trade.