BHEL owes over Rs 500 cr to MSMEs; seeks more vendors
BHEL owes over Rs 500 cr to MSMEs; seeks more vendorsNew Delhi, Oct 18 (KNN) Maharatna public sector enterprise, BHEL, is seeking more micro, small and medium enterprises to become its vendors , but the Rs 50,000-crore plus power engineering major has been running outstandings of over Rs 500 crore to the MSMEs for at least two years at a time when the small and tiny units need the hard cash in pressing times.
The Bharat Heavy Electricals Limited, which has several manufacturing facilities in places like Bhopal, Hyderabad and Trichy, has total outstandings of Rs 503.30 crore for the financial year -2012-13 and Rs 554.33 crore a year before ,as per its balance-sheet disclosures.
As per the mandatory disclosures in its annual report, the interest due to the BHEL suppliers at the end of the last fiscal was Rs 10.47 crore and it did not pay a penny as interest on delayed payment, as per the BHEL balance-sheet.
The company’s Bhopal unit has now invited MSME vendors to register themselves for business and its ‘Supplier Development Cell’ is also seeking more participation of the domestic vendors.
Under the MSME Act of 2006 where a buyer delays payment beyond 45 days from the date of supply, the SME supplier can approach the Micro Small Enterprises Facilitation Council (MSEFC) and seek an award or a decree.
"The BHEL episode points out to a malaise which runs deep as payments to MSMEs are routinely delayed by both public and large private sector companies flouting the regulatory provisions, says D. Gandhikumar President of Federation of Indian Micro and Small & Medium Enterprises (FISME)
“The Central Public Sector Enterprises like BHEL are very important buyers of MSME products. We wish at least CPSUs become more sensitive to the needs of the MSME sector'”, he lamented. ( KNN/PC)