BHEL postpones delivery of power equipment
Delivery of power equipment worth Rs 600 crore has been put off by the Bharat Heavy Electricals (BHEL) because of sluggish demand. The company's Executive Director-EDN, KC Ramamurthy said that due to sluggish economy, severe cash crunch to complete the project and non-availability of coal to run or to start power plants, many private power producers have sought postponement of equipment delivery. Ramamurthy said that project progress has been very slow and for the company it takes six to nine months to execute the project order. The electronics division's profit before tax has dropped sharply by 62.5 per cent to Rs 312 crore during the financial year (FY) 2012-13 against the previous year. The company's turnover is also down 26.06 per cent to Rs 1,708 crore in FY 2012-13 against Rs 2,310 crore in FY 2011-12. Expert turnover (including deemed exports and SEZ) is Rs 672 crore against Rs 741 crore recorded last year, he added.