BHEL made inadequate efforts to improve performance: CAG

Government auditor CAG has found that there was inadequacy of effort by state-run power equipment maker BHELBSE 0.69 % for diversification and increasing competitiveness, and it did not manage receivables properly. "Major audit findings show inadequacy of efforts for diversification, inadequate efforts for increasing competitiveness, and improper management of receivables," the Comptroller and Auditor General said in a report tabled in Parliament today. As the decade ending 2010 posed challenges to BHEL in the form of climate change, increased competition and squeezed delivery schedules with emergence of new competitors, BHEL's turnover declined sharply after 2012-13 and the company reported a loss for the first time in 2015-16. The CAG recommended that BHEL needs to develop its own products that excel over competitors through R&D initiatives and expeditious efforts should also be made to forge technological tie ups in new business areas. It also said that 'One BHEL' ERP system should be implemented expeditiously for processes and systems improvement and better coordination among units of BHEL. More at: http://economictimes.indiatimes.com/industry/indl-goods/svs/engineering/bhel-made-inadequate-efforts-to-improve-performance-cag/articleshow/59972092.cms