Bhel may have to write off bad orders

Bharat Heavy Electricals Ltd (Bhel) runs the risk of having to write off part of the Rs.39,000 crore that clients owe the state-controlled power equipment maker in overdue payments, heavy industries secretary Sutanu Behuria said. Around half of the outstanding dues as on 30 June will be paid to Bhel only after the company meets specific milestones related to a project. The department of heavy industries is the nodal ministry for maker of power generation equipment. Bhel’s unrecoverable dues may be declared as bad orders. “As per audit rules, they (Bhel) have to,” Behuria said in an interview on 21 January. “Some might become NPAs (non-performing assets).” Bhel has a manufacturing capacity of 20,000 megawatts (MW) a year and orders worth Rs.1.08 trillion. “We will precipitate actions through their banks,” another officer of the department said, requesting anonymity. “Those projects, which may not get to see the light of the day may be declared as bad orders.” more at : http://www.livemint.com/Companies/viGyYDYGnOdsIyPV5cgotJ/Bhel-may-have-to-write-off-bad-orders.html