Vilasrao Deshmukh at HEC in Ranchi on Saturday. Picture by Prashant Mitra

Ranchi, Feb. 13: The Union heavy industries ministry will present a special proposal to the Planning Commission demanding additional funds to help Heavy Engineering Corporation Ltd, Ranchi (HEC), modernise its outdated plant and machinery.

Unveiling a complete turnaround plan for HEC here today, Union minister for heavy industries Vilasrao Deshmukh said that on top of the priority list was an immediate improvement of the net worth of HEC, listing of its shares with major stock exchanges, modernisation of outdated plants and machinery, a joint venture with major PSUs and increased efforts by the Centre to get more work orders from railways, defence, nuclear and space research, Coal India, Steel Authority of India and others.

“The net worth of HEC is negative. This is the single major stumbling block that prevents the corporation from getting increased work orders,” the Union minister, who was on his maiden visit to HEC, said, adding that his ministry’s would also try and ensure that the new allocations were included in this year’s budget.

“HEC has all the talent and the capacity to attain the status of a Nav Ratna company. However, its the negative net worth is coming in the way of all efforts,” he said.

To improve HEC’s net worth, the union heavy industries ministry has written to the state government to release the remaining Rs 160 crore to HEC in lieu of land and buildings taken over by Jharkhand for setting up the secretariat, Assembly and to provide residential accommodation to officials.

As per a tripartite agreement between the state government, Centre and HEC, the state government had to pay a total of Rs 250 crore for taking over HEC’s assets. Of this, only Rs 90 crore has been paid by the state government.

“Once the state government pays up Rs 160 crore, the net worth of HEC will become positive. Once that happens, the department of heavy industries would initiate dialogue with railways, defence and various PSUs to ensure increased flow of work orders for HEC,” Deshmukh promised.

Also, the Union minister may have won the hearts of HEC employees by announcing a merger of 50 per cent dearness allowance with basic pay, but he was not so forthcoming on wage revision, which he said would happen only when HEC attained positive net worth.

Swaraj Mukherjee, the president of the Guild of HEC Officers’ Association, who met the minister, thanked him for the DA merger on behalf of the employees.