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BHEL move to cut imports will help domestic vendors

Updated: Aug 27, 2013 04:01:18pm
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New Delhi, Aug 27 (KNN)   BHEL move to reduce imports of raw material equivalent to 30 per cent of its production cost will help domestic vendors who are largely based near manufacturing facilities of the country's largest power equipment manufacturer.

The proposal made in the wake of sharp decline in rupee value that results in significant increase in the landed cost of imported raw material is likely to help the company reduce its dependence on imports and at the same time, improve designs, widen vendor base and outsourcing works.

Decline of the rupee has had significant impact on Bharat Heavy Electricals Limited (BHEL).  Other than reduced number of orders, it has strengthened domestic competition.

As far as SMEs are concerned, BHEL’s decision to source locally will have considerable bearing. 

“It will certainly help local entrepreneurs from BHEL ancillaries, said Secretary, Cherlapally Industries Association, Y Sudhakar Reddy. 

‘BHEL is likely to form a committee which will identify entrepreneurs who produce products that they need before placing order with them.  We hope it will help many of our entrepreneurs,” he added.

BHEL is engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz. Power, Transmission, Industry, Transportation (Railway), Renewable Energy, Oil and Gas and Defence.

It comprises of 16 manufacturing divisions, two repair units, four regional offices, eight service centres and 15 regional centres, currently operating at more than 150 project sites across India and abroad.

BHEL’s share of 57 per cent in India’s total installed generating capacity contributes 69 per cent (approx.) to the total power generated from utility sets (excluding non-conventional capacity) as of March 31, 2013. It employs a highly skilled and committed workforce of 48,399 employees.

It has been exporting power and industry segment products and services for over 40 years. BHEL’s global references are spread across over 75 countries. The cumulative overseas installed capacity of BHEL manufactured power plants exceeds 9,000 MW across 21 countries including Malaysia, Oman, Iraq, the UAE, Bhutan, Egypt and New Zealand. (KNN/ES)
 

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