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Last Updated : Aug 03, 2020 04:59 PM IST | Source: PTI

COVID-19 impact | BHEL grapples with uncertainty over returning to normal business operations

The country went into a complete lockdown in March-end to check the spread of coronavirus and the government started giving relaxations in lockdown guidelines towards the April-end by gradually opening up economic activities.

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State-run engineering major BHEL on Monday said it is still grappling with uncertainties with regard to resumption of normal business operations as rising coronavirus infection cases have led to labour shortage and supply chain disruptions.

The country went into a complete lockdown in March-end to check the spread of coronavirus and the government started giving relaxations in lockdown guidelines towards the April-end by gradually opening up economic activities.

However, with COVID-19 cases still surging in various parts of the country, BHEL struggled to get back to its normal operational capacity.


Meanwhile, India's COVID-19 tally has crossed the 18-lakh mark and the death toll has climbed to 38,135, official data showed on Monday.

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"Return to normal business operations is presently uncertain due to rising COVID-19 cases across the world, including India, disrupted supply chains and poor labour availability at project sites," the company said in a regulatory filing.

The company said it is continuously assessing the prevailing conditions for taking the best possible steps, but a reasonable measure of the future impact will be possible only once the overall situation stabilises.

The disruption of international supply chains in the first quarter of the calendar year, coupled with the nationwide lockdown towards end of Q4 FY20, has some impact on the financial parameters, in respect of revenues, profitability and cash inflows, the filing said.

Cash collection activities continue, but delays due to the prevailing conditions are anticipated, it added.

However, the company has got encouraging response from the original equipment manufacturers (OEMs) for utilising its manufacturing facilities.

Earlier in May, BHEL had invited expression of interest (EOI) from global OEM firms to leverage its facilities as well as capabilities and to shift their production base to India amid the COVID-19 pandemic.

The EOI was issued on premise that there were a large number of OEM firms who intended to shift their manufacturing base from China to other countries after the COVID-19 outbreak.

BHEL said on Monday, "Nearly 60 relevant responses (on the EOI) have been received with more than 50 per cent companies of foreign origin, cutting across several sectors such as railways, defence & aerospace, e-mobility, power equipment, etc. High level teams at BHEL are working to take these forward in a time-bound manner.
First Published on Aug 3, 2020 04:51 pm