Downturn hits BHEL vendors

Around the same time last year, ancillary units of BHEL were struggling to meet deadline for delivering output because of power scarcity. A number of units among the over 400 ancillary industries had to depend on diesel generators to keep the operations running even if it meant a substantial rise in input costs. Now, the power availability does not mean much to the industries owing to depleted orders, the industries are facing capacity under-utilisation. Around 60 units have already been on the brink of closure. Nearly 150 industries that were started in the last couple of years and those among established ones that had ramped up capacity in anticipation of higher orders are the most affected. Repayment of bank loans has hit them hard, according to Rajappa Rajkumar, Vice-President, Tamil Nadu Small and Tiny Industries Association. Around 2,000 industrial workers had been rendered jobless, and the trend of workers shifting base to other parts of the State was perceptible, he said. more at: http://www.thehindu.com/news/cities/Tiruchirapalli/downturn-hits-bhel-vendors/article4901282.ece