Thursday, October 17, 2013

Coal crisis threatens the existence of TN MSMEs supplying equipment to BHEL

C Shivakumar Chennai:
Small and micro enterprises in the state supplying equipment to public sector power giant Bharat Heavy Electrical Limited are struggling to survive as most of the power projects have been put on hold due to coal crisis, according to additional industrial advisor, Ministry of Micro, Small and Medium Enterprises S Sivagnanam said.

Speaking to Express on the sidelines of Cluster Level Intellectual Property Awareness Programme organized by Confederation of Indian Industry here on Wednesday, Sivagnanam said that BHEL ancillaries in Ranipet and Tiruchy have been hit as business was not flowing from BHEL.

A BHEL senior official confirmed that BHEL is not getting orders for the equipment from its customers including the state electricity corporations as most of the power projects across India has been put on hold due to the coal crisis. “Many of these ancillaries are now not getting the orders as they used to get after our customers have put on hold many power projects due to coal crisis,” he said.

Interestingly, this has affected BHEL and it is believed that the public sector unit has been ordered to diversify its business to making locomotives and treatment plants.

Interestingly, coal crisis has hit National Thermal Power Corporation badly. A National Thermal Power Corporation official said that many units have been hit due to the coal crisis. “NTPC could have generated six billion units of power from April to September but are unable to do it due to the coal crisis,” he said. Interestingly, the coal crisis is being felt after the coal scam surfaced, say NTPC officials. However, officials refused to divulge any information in this regard.

Sivagnanam said that many micro units have shut down and some are bleeding due to this crisis. “We trained about 25 women entrepreneurs who were supplying equipment to BHEL but they were hit as the business was not flowing,” he said.

He said the orders for boilers and auxillaries are not forthcoming from BHEL as most of the power projects are now put on hold.

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