State-run BHEL is facing an “alarming situation” in the absence of new orders from the much-delayed power projects, despite an existing order book of Rs 1.30 lakh crore, according to a government official.

The company conveyed its concerns recently to the Heavy Industry Ministry, the official said.

The order flow has been hurt in recent times in the wake of multiple power sector problems. From 2011-12 onwards, issues of coal linkages, finances and delays in environment clearances are impacting the power sector.

The official said no new orders are coming up while existing projects —— that have been finalised —— are going slow or put on hold in the wake of financial constraints. In the wake of these problems, BHEL is finding it difficult to proceed with many of the projects, he added.

According to the official, BHEL informed the Ministry that “It is an alarming situation not only for BHEL because the company has expanded the capacity, taken number of people, but also for downstream industries of BHEL“.

The company raked in a net profit of Rs 7,039 crore on a turnover of Rs 49,244 crore in the last financial year. During the same period, the entity’s net worth stood at Rs 25,373 crore.

(This article was published on October 2, 2012)
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