BHEL starts usance LC for private sector power plant equipment orders

Bharat Heavy Electricals has introduced a payment mode specifically targeted at private power project developers.

The newly introduced Usance letter of credit allows project developers a grace period for payment to BHEL against equipment orders.

The new payment term offers better comfort to private players, who have been responsible for boosting BHEL’s order books in the last couple of years and are scheduled to execute well over half the projects slated to come up in the next Five Year period (Twelfth Plan). The move is being seen a counter to Chinese equipment suppliers, who have an advantage in terms of offering payment support to customers through low cost China EXIM funding.

Mr BP Rao CMD of BHEL told Business Line that “We have introduced the Usance LC which offers better comfort to project developers. There`s been a positive response from the industry.”

ref:
http://www.steelguru.com/indian_news/BHEL_starts_usance_LC_for_private_sector_power_plant_equipment_orders/216362.html