Ranchi, Feb.12: Vishvajit Sahay, a joint secretary in the department of heavy industries, has been named CMD of Heavy Engineering Corporation Ltd (HEC) after incumbent R. Misra was suspended yesterday for failing to meet the PSU’s performance targets.
Sources said Sahay, who held a series of meetings with HEC officials in Ranchi today, would hold additional charge of HEC and continue to discharge his responsibilities as joint secretary.
Sources revealed that Misra’s unceremonious removal came after HEC clocked losses to the tune of Rs 67 crore upto December 31, 2013, against a target of Rs 24 crore even as sales dipped to Rs 272 crore against a target of Rs 720 crore upto December 2013.
HEC was touted as the face of the Union department of heavy industries for being the only PSU to have successfully turned around after being pulled out of the list of sick industries in 2008.
The corporation was once dubbed a drain on the public exchequer by the Board for Industrial and Financial Reconstruction which even recommended that liquidation proceedings be commenced to close down HEC for good.
However beginning 2006-07, HEC proved pundits wrong by grossing up a net profit of Rs 2.86 crore and continued to repeat its performance by earning profits till 2012-13.
HEC’s profits rose to an all-time high of Rs 44.27 crore in 2009-10. Even in the last fiscal, HEC grossed modest profits of Rs 12.21 crore, the sources confided.
For the current fiscal, HEC had been given a net profit target of Rs 40.71 crore. However, with the corporation already recording losses to the tune of Rs 67 crore by December 31,2013, the department of heavy industries realised that drastic measures were required as a face saving measure before it was too late.
“With only one and half months left in the current fiscal, the department decided to do away with Misra for good,” a company source pointed out.
An official communiqué issued by HEC today said, “The department of heavy industries has been concerned with the ongoing affairs of HEC and is of the view that the company needs to be encouraged to perform better on all fronts. In order to attain that objective, the ministry has deputed Vishvajit Sahay to hold additional charge of the post of CMD, HEC.”
Sahay, who belongs to Indian Defence Accounts Service, brings with him rich and diverse experience of having served in key positions in ordnance factories, information and broadcasting ministry and in the acquisition wing of the ministry of defence.