Terming the production target of Rs 1000 crore set for the fiscal 2013-14 for Heavy Engineering Corporation (HEC) as feinted new chairman cum managing director (CMD) Vishvajit Sahay looked towards the Centre for additional support. A day after joining, the CMD also blamed global economic slowdown for poor performance of the plant.
“I would not go into whether the target was achievable or not but I think that the target of Rs 1,000 crore was feinted. As I see, it would be near about 2012-13 performance of about Rs 600 crore,” said Sahay, addressing a Press conference after his whirlwind joining on Tuesday. He came joining the post even before the ex-CMD R Misra was informed about the replacement. Though, he denied reading too much into it and termed his accession as normal.
Also in the charge of Joint Secretary in the department of Heavy Industries, Sahay said that apart from Rs 253 crore of support available the management had demanded Rs 200 crore more for a comfortable working capital for the plant. “We have also demanded bank guarantee for two more years and the Minister has taken it positively,” he said.
Talking about dismal performance of HEC, Sahay saw it as repercussion of global phenomenon. “There are several big PSUs whose situation is bad and they are just paying salaries to the staff. We tend to know few who are performing. I think HEC is in mid-way. It is not in dire straits but challenging. The situation is not as bad. I am positive about its future,” said the CMD and added that in the era of openness it was not possible for Government companies placing orders to HEC on nomination basis.
He also mentioned about challenges with the company that include encroachment over its land and pending dues with the State Government besides modernisation. “We have not received about dues from Jharkhand Government as it amounts about Rs 11 crore.”