Coal scam hit Bhel's performance: Heavy Industries Minister
Coal scam adversely affected the business of state-run power equipment maker Bharat Heavy Electricals Ltd (BHEL), during the three fiscals to 2014-15 even as the company doubled its production capacity, Heavy Industries Minister Anant Geete said today.
"BHEL's core function is that of power equipment manufacturing. However, in 2012-13, 2013-14 and 2014-15 the power generation was halted due to coal scam," the minister said at a press conference here.
"New power projects were not commisioned while BHEL doubled its manufacturing capacity to aid generation of 20,000 MW power leading to its financial troubles," he said.
State-run power equipment maker BHEL's standalone net profit declined 59.5 % to Rs 359.58 crore in the quarter ended March 31, 2016, due to lower income from operations.
On the consolidated basis, BHEL posted a net loss of Rs 895.93 crore for the year ended March 31, 2016.
Besides, Joint Secretary in the Department of Public Enterprises Rajesh K Chaudhry said that central public sector enterprises (CPSEs) are yet to sign MoUs due to the revision in MoU guidelines in December.
"The negotiations regarding MoU are going on according to the new guidelines. The preliminary negotiations of 80 big PSUs like Maharatnas and Navratnas have been completed while targets of 60 PSUs have been fixed," Chaudhry said.
He cited the revision in guidelines as the reason behind the delay in signing of MoUs, adding that the negotiations in this regard will be completed by month-end or July first week.
The guidelines were revised with an objective to have stringent evaluation of performance of CPSEs under MoU system.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
10:55 PM IST