BHEL officials visited HEC plants in Ranchi to assess operations and discuss the potential merger. The visit follows BHEL’s commitment to provide raw materials and operational direction to HEC. Meanwhile, contract workers will resume their duties after a settlement, ended a five-day strike at HEC’s FFP plant.
Bharat Heavy Electricals Limited (BHEL) conducted a two-day inspection of HEC’s operations in Ranchi with an aim to assess the condition of Heavy Engineering Corporation (HEC) plants. The BHEL team, which included officials from Haridwar and Hyderabad units, examined the machinery and equipment at all three HEC plants. They also organized discussions with HEC’s appointed BHEL officials, providing insights into the current operational state of the plants. The visit has gained significant attention, particularly after BHEL’s recent statements in the Parliamentary Committee, where it was revealed that BHEL would provide raw materials and operational direction to HEC. In addition, BHEL had expressed intentions to help HEC secure directives from other companies as well. This development comes after a proposal was made in the Parliamentary Committee to merge HEC with BHEL, an idea that has now gained momentum with the latest visit of BHEL officials.
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Proposal is Pending for HEC-BHEL Merger
The proposal to merge HEC with BHEL first emerged last year when the Government took a closer look at HEC’s deteriorating financial health, liabilities, and the need for plant modernization. At that time, HEC had a liability of Rs. 1200 crores. Due to these financial issues, a merger was seen as a potential solution. The Ministry of Heavy Industries had given its initial approval to the merger, but the proposal never made it to the Union Cabinet for final approval. At present, all top-level posts at HEC, including the Chairman and Managing Director (CMD) and directors, are occupied by BHEL officials on deputation. This arrangement has led to questions about HEC’s independence and its future prospects under BHEL’s oversight.
The Current Scenario at HEC Plants
HEC, which operates three plants in Ranchi, is involved in manufacturing everything from forgings to tools and machinery. The plants have historically been an essential part of India’s heavy engineering and strategic manufacturing sectors. However, in recent years, HEC has been facing challenges related to outdated machinery and a lack of permanent leadership. Notably, for the past four years, HEC has not had a permanent CMD, with BHEL’s officials continuing to hold leadership roles on deputation. Despite these hurdles, HEC remains a key player in India’s manufacturing sector, and the Government is keen on revitalizing the company’s operations. A report detailing HEC’s utility as a BHEL unit has already been submitted to the Ministry of Heavy Industries.
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HEC Contract Workers Issues and Recent Developments
Another significant aspect of this visit is the ongoing discussions around HEC’s contract workers. On Monday, these workers are set to resume their duties at the plants, following an agreement reached between HEC management and the HEC Contract Workers Union on 05th July 2025. The workers had previously been on strike, demanding better working conditions and financial assurances. The resolution has now been reached, ensuring that the workers will not face any financial losses moving forward. The meeting, led by Union General Secretary Leeladhar Singh, concluded with a reaffirmation of HEC’s responsibility as the principal employer for its contract workforce. As part of the agreement, operations at the FFP plant have resumed, with the 10-ton furnace now back in action after a brief pause due to the strike.