BHEL Bhopal unit waits for projects to revive.

In a presentation to local industrialists in 2013 on the power equipment sector, SR Prasad, then the executive director of Bharat Heavy Electricals' Bhopal unit, had sounded worried. He said his company was looking at new areas like nuclear power, transportation and defence to meet upcoming challenges and retain its Maharatna status.

Prasad retired this year, but his fears were well founded. The unit's profit has declined from Rs 689 crore in 2012-13 to Rs. 264 in 2014-15. Rising inflation and costly labour are a hindrance as BHEL struggles for business from exhausted project developers.

Scams during the previous United Progressive Alliance regime and land and environmental issues have held up projects across the country and turnover at BHEL's Bhopal unit has slipped from Rs. 4,800 crore in 2011-12 to Rs. 3,678 crore in 2014-15.

Established in 1964, the unit manufactures hydro-turbines, transformers, electric motors and switchgears.

'There was a plan to set up a nuclear turbine manufacturing unit through a tripartite agreement among BHEL, a central government-owned power entity and a private player. No private partner came forward although BHEL has enough capital and land to set up the plant,' a company executive said.

BS