NEW DELHI, Mar 24: Noting that there have been complaints of delay in supply of equipment by BHEL, a Parliamentary panel has recommended that the state-run company should make efforts to ensure timely delivery to its clients.
“The committee is also cognisant that BHEL’s order books are impressive, however, there have been persistent complaints about delay in supply of equipment and in commissioning the projects, thereby causing significant financial losses to the client companies,” the panel observed in its report.
The Parliamentary Standing Committee on Industry has suggested that BHEL’s board and its parent ministry — Heavy Industries — should take steps to ensure delivery of contract on time.
“The Ministry (Heavy Industries and Public Enterprises) and the board of the company must ensure that the expansion plan of the company must include the measures of timely delivery of contracts and equipment to the clients,” the report tabled in Parliament said.
The 31-member panel, headed by Rajya Sabha MP Tiruchi Siva, noted that BHEL features right at the top of the priorities of Department of Heavy Industry and has every potential to become an established global player in its field.
The panel had suggested that the public sector entity should take measures to prevent shortfall in its performance.
BHEL, a power equipment major, is battling tough business conditions amid stiff competition and overall slowdown in the power sector.
The company was recently conferred with Maharatna status, which provides greater operational and financial autonomy.
State-run power equipment maker expects a revenue of Rs 10,000 crore from foreign contracts by 2017 even as domestic orders from private companies have taken a hit due to financing constraints. (PTI)
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