BHEL facing alarming situation in absence of new orders

Press Trust of India reported that BHEL is facing an alarming situation in the absence of new orders from the much delayed power projects, despite an existing order book of INR 0.13 million. The official said that the company conveyed its concerns recently to the Heavy Industry Ministry. 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 added that no new orders are coming up while existing projects that have been finalized 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. 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“. Source - Press Trust of India ref: http://www.steelguru.com/indian_news/BHEL_facing_alarming_situation_in_absence_of_new_orders/289382.html