This paper describes the development work carried out on physical vapour deposition of beryllium on zivcaloy appendages, in connection with split spacer fuel bundle design for Pressurised Heavy Water Reactors (PHWR). Beryllium coating on appendages facilitates the formation of zirconium-beryllium eutetic during the subsequent vaccum induction heating operation which leads to a strong adherent brazed joint. Different grades of beryllium were tried out and a number of evaporation trials were taken to study the effect of various parameters on coating efficiency and quality of the coating. Based on this development work, specifications were finalised for equipment suitable for production scale operation. Zircaloy elements for a few prototype fuel bundles were made by employing the technique of coating and brazing for joining the zircaloy appendages onto the zircaloy elements.