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HEC plans collateral securities to raise debt and clear worker dues


Public sector undertaking Heavy Engineering Corp (HEC) is banking on collateral securities to generate funds and clear workers’ dues.

State-run Bharat Heavy Electricals Ltd (BHEL) has also been tasked to recover payments from HEC’s clients, a senior government functionary told ET.

“The organisation is making an effort to generate resources through collateral securities to clear its financial dues,” the official said, adding that HEC is also looking at securing debt to pay off workers.

Currently, the senior management of BHEL is managing HEC. BHEL chairman and managing director Nalin Shinghal holds the same posts on the HEC board. According to the government, since both HEC and BHEL are government-controlled companies under the Ministry of Heavy Industries, BHEL officials have been given the additional responsibility of reviving HEC.

Employees of HEC had protested on the day of the Chandrayaan-3 moon landing, claiming that the Indian Space Research Organisation (ISRO) had not paid the PSU for the equipment supplied.


The government, however, refuted the claim.“HEC did not supply any components to the Chandrayaan-3. HEC had supplied parts for the launching pad, some electric overhead traveling cranes, from 2003 to 2009, and they were paid for,” the official said.In addition to worker dues, HEC also has to honour supply commitments. According to the company’s annual report, HEC’s outstanding order book as on March 31, 2022 stood at Rs 1,451.40 crore.

The PSU was first declared sick in February 1992 and the government has provided five bailouts to it so far.


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