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Updated: February 12, 2013 23:31 IST

BGR pins hopes on State utilities

Special Correspondent
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Swarnamugi Karthik
Swarnamugi Karthik

With little movement on independent power projects, the reliance of EPC (engineering, procurement and construction) companies such as BGR Energy on the State electricity boards and NTPC is high, despite receivables from the government utilities continuing to remain “an issue.”

Work on the IPPs had stopped and equipment worth thousands of crore rupees meant for such projects were lying at the ports, BGR Energy Systems Chairman and Managing Director B. G. Raghupathy said here on Tuesday. Addressing a press conference, he said all [independent power] projects had come to a standstill and cited the delay in payments by the government to the power producers as the key reason.

On the receivables for the company, he said they were Rs.2,100 crore. Of which, Rs.800 crore was retention money, which would be paid only after the project achieved certain milestones.

In the meanwhile, Swarnamugi Karthik, daughter of Mr. Raghupathy, has become Director-Corporate Strategy. She would play an important role in identifying new business opportunities. Apart from ensuring timely completion of projects, she will be involved in implementation of the ISO for the power project division. She is with the company since 2005, and the present elevation comes at a time when the company is embarking on large capital expenditure. The order book of the company is over Rs.14,000 crore.

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Since when did BGR Energy bid for IPPs? Even during the peak 2006-2010
period, they played safe and bid only for SEB projects. Their SEB
execution has run into problems. Given the enormous competition in the
power sector, the truth is they are not getting SEB projects. They have
come to rely on IPps just now.

from:  Krishna
Posted on: Feb 13, 2013 at 11:06 IST

Start a company. Use your political connections to get a few crores
worth of projects. Offload a little of your stake to the unsuspecting
public at an astronomical price. And then leave the greedy & foolish
public to its fate as they watch in despair the stock price going
down...down....down. Meanwhile pay yourself a huge remuneration even
as your company's turnover and profits sink. Then Induct your huge
brood into the company as directors and make hay while the sun shines.
This in fact summarizes the MO of companies like this one here. So
much for corporate governance. And one good thing that comes out of
elevating dynasty is they will be daddy's rubber stamps no matter
what. so much for professional management.

from:  Krishna
Posted on: Feb 13, 2013 at 10:59 IST
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