Heavy Engineering Corporation’s Financial Strain Threatens Closure
Ranchi’s Heavy Engineering Corporation (HEC) faces imminent shutdown due to inability to pay electricity bills, putting its future in jeopardy.
RANCHI – Ranchi’s Heavy Engineering Corporation (HEC), a public sector enterprise known as the ‘Mother of All Industries’, is on the brink of a shutdown.
The company’s financial woes have escalated to a critical point, with the Jharkhand State Electricity Distribution Corporation Limited (JBVNL) demanding payment of Rs 180 crore in overdue electricity bills within 15 days.
HEC’s request for financial assistance from the Government of India has been denied, with the government insisting that HEC must become self-sufficient.
The company’s operations are severely hampered by a lack of working capital, despite holding work orders worth Rs 1,355 crore.
HEC’s financial decline is evident in its annual report, showing a consistent decrease in production and mounting losses over recent years.
The company’s total liabilities have surpassed Rs 250 crore, including substantial dues in CPF loans, voluntary PF, employer and employee contributions to PF, water charges, municipal taxes, and professional taxes.
Established in 1963, HEC has been a cornerstone in India’s industrial sector, producing machinery and equipment for various industries.
However, it has failed to meet the work order targets set under the MOU with the Ministry of Heavy Industries for the 2023-24 financial year.
HEC’s production has plummeted, and employees have not received salaries for 19 months, leading to a near standstill in its three major plants.
The company’s inability to fulfill the MOU targets, including achieving work orders worth Rs 650 crore, is a significant concern.
With the looming threat of electricity disconnection and halted production, the future of this once-pioneering enterprise hangs in the balance.
