Economy

HAL, BEL and BHEL have been clearing dues to small enterprises on time, says industry body

Anil Urs Bengaluru | Updated on October 01, 2019 Published on October 01, 2019

They source close to ₹6,000 crore of goods and services

Bharat Electronics Ltd (BEL), Hindustan Aeronautics Ltd (HAL) and Bharat Heavy Electricals Ltd (BHEL) -- three Bengaluru-based, State-owned PSUs which source close to ₹6,000 crore of goods and services -- have been clearing all their dues to SME vendors on time.

“These PSUs which have good order-book for domestic and exports. All have good vendor development programmes and each company sources close to 20 per cent of its turnover from small and medium enterprises (SMEs). They have been been clearing all dues on time. We don’t have any complaints,” Raju R, President, Karnataka Small Scale Industries Association (Kassia), who is also a registered vendor to PSUs, told BusinessLine.

“This discipline is not seen in other PSUs and what we hear from the Union Finance Ministry is that a clear-cut methodology and monitoring mechanism is in the offing,” he added.

“Also what we hear is that in addition to clearing dues, purchase preference of 25 per cent for SMEs by the PSUs is also being pushed aggressively,” said Raju.

Finance Minister Nirmala Sitharaman while reviewing the capital spending and general working of PSUs last week had instructed them to clear overdue payments to vendors.

The minister also set October 15 as the deadline to maharatna and navratna Central Public Sector Enterprises (CPSEs) numbering 32 to clear all dues. Also, CPSEs were asked to submit a roadmap for the next four quarters.

Bharat Electronics Ltd (BEL) which is driving the indigenous manufacturing of defence equipment, sources over 60 per cent of materials from the domestic industry. MV Gowtama, Chairman and Managing Director, BEL, had said that “BEL has 1,280 SMEs in its approved vendor directory and the outsourcing from SMEs is about 30 per cent”.

HAL, which sources close to ₹3,000 crore from the private sector, has an indigenisation cell which handholds MSEs. While HAL also has vendors development programme and is the leader in indigenisation programmes in the aerospace sector. The company has built working relationship with over 2,500 vendors in the MSME segment. It is planning to hasten the indigenisation efforts.

Published on October 01, 2019
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