In 2004, Board for Industrial and Financial Reconstruction (BIFR) ordered the closure of the ailing Heavy Engineering Corporation Ltd (HEC), Ranchi, and directed the appointment of an official liquidator to clear off all debts. Two years later, HEC is riding high with a complete turnaround with its chairman-cum-managing director Soumen Biswas leading the charge.

In the meantime, talks are in concluding stages regarding long-term tie-ups with Czech, German, Korean and Indian firms. HEC also recorded an overall production of Rs 323 crore against a target of Rs 300 crore fixed by BIFR . The BIFR target was to be achieved by December 31, 2006 and the corporation surpassed the target with two days to spare. HEC’s CMD talks to Rudra Biswas on the year that was and reflects on the future targets.

This is the first time in HEC’s four and more decades of history that targets were met. How was this possible?

We had a target of Rs 300 crore that had to be achieved within 2006-07 fiscal. Our current production is Rs 323 crore and by March 2007, we will achieve an all-time record in production. The change was possible because of the support we received from the Union ministry of heavy industries and the government of Jharkhand. Also with the help of our work force comprising contract labourers, workers, supervisors, officers and trade union members, everyone pitched in. I am sure that HEC would continue to enjoy the support of all.

What are the targets for the next year?

For 2007-08, we have fixed a target of Rs 450 crore, one-and-a-half times the present goal. Once tie-ups with foreign firms are finalised, HEC would be in a position to execute annual orders worth more than Rs 570 crore.

How much work order does HEC have at present?

HEC has work orders amounting to Rs 750 crore. For the first time, HEC has bagged a single order worth Rs 185 crore from Neelachal Ispat Nigam Ltd for cranes of various capacities and steel-making equipment required for their second phase of modernisation . In addition, we have a Rs 1,356 crore bulk order from Northern Coalfields and from our regular and valued customers like Coal India, SAIL and Indian Railways.

HEC was talking with MNFs for long-term tie-ups. What came out of those?

Now, we have a tie-up with Skoda and orders have been placed for a complete modernisation of our forging plants. This, we believe, would lead to further orders. Also talks are in their final stages with Hegenscheidt, a German firm, regarding technology transfer for the manufacture of railway machines. An MoU would be signed soon with the German firm. Besides, talks are also on with other foreign firms for global tie-ups.