"Stay order on contract given to BHEL shocking"

Members of the Tiruchi-based BHELSIA submitted a petition stating that the stay order obtained by the consortium backed by the Chinese company had shocked the ancillary units of the BHEL.

Concerned over a stay obtained by a consortium led by a Chinese company against the Tamil Nadu Electricity Generation Distribution Corporation (Tangedco) awarding contract to the Bharat Heavy Electricals Limited (BHEL) for the Ennore SEZ thermal power project, the BHEL Small and Medium Industries Association here has petitioned the Chief Minister seeking her intervention .

Members of the Tiruchi-based BHELSIA submitted a petition to the government through the Collector on Monday stating that the stay order obtained by the consortium backed by the Chinese company had shocked the ancillary units of the BHEL.

The BHEL was the lowest bidder for the supply of boilers for the two 660 mega watt Ennore SEZ power project and was about to bag the order when the stay was obtained, said R. Maheswaran, secretary, BHELSIA, an association with about 500 member units.

At a time when several ancillary units were in the red owing to the lack of BHEL orders, the units felt happy expecting that the public sector would bag the order.

However, the news of the stay obtained by the consortium against the Tangedco giving orders to the BHEL has caused concern to the BHELSIA, whose members are largely dependent on the public sector undertaking.

If the order, valued about Rs. 10,000 crore, was awarded to the BHEL, it would also immensely benefit the State, said G. Pari, president, BHELSIA.