BHEL Bhopal to cut down on subsidies, freebies

Company to curtail privileges that absorbs around Rs 120 crore every year

To curtail certain privileges like cheap meal at as low as Rs 3 or tea at just 50 paisa, management at mother unit of Bharat Heavy Electricals Limited (BHEL) in Bhopal is going to talk tough now in hard times.

Interestingly, certain privileges are not only available to BHEL employees but also employees of State Bank of India, state police, Bhopal Municipal Corporation and even state education department who are posted in the company township. For example, they avail cheap conveyance at as low as Rs 12 per month or subsidised accommodation that too payable by the state government.

These freebies, privileges and facilities absorbs at least Rs 100-120 crore each year from BHEL local unit's kitty. This year the company has witnessed its profitability down by 50 per cent and is expected from the new government to render some succor by forming a favourable policy that would generate more orders.

"In tough times when our profitability and turnover both have gone down the employees have been advised to make judicious use of available resources," a top management executive told Business Standard. "We have raised bus fee from Rs 12 per month to Rs 300 per month," he added.

The decision has triggered a protest among local labour unions and the top management is facing their ire.

"The prevailing rates of monthly conveyance fee was Rs 12 during 1979 when minimum salary stood at Rs 335, which is now has gone up to Rs 10,500 per month. The other units of BHEL like Jhansi charges Rs 600 per month, Hyderabad unit charges Rs 650 per month, Trichy charges on distance basis and it ranges from Rs 550 to Rs 1,000 per month while Hardwar unit which charges Rs 200 per month is also revising it. Also, most units do not allow dependents of employees to avail the facilities," the executive said.

Similar, is the case in meals. The BHEL local unit offers no-restriction meal at Rs 3 and buffet lunch at Rs 10 for its regular and contractual employees. But it would be no more available at the cheap rates.

"We are planning to raise rates not to cut cost but to improve quality also we will have to shell out funds from BHEL's exchequer as a meal is nowhere available at Rs 5 or Rs 10," S R Prasad, executive director BHEL, Bhopal, said.

It is not only subsidised conveyance or meal facilities, the BHEL management is also considering curtailing other facilities. It has sent its demands of more than Rs one core to state government against residential units used by state police.

As many as 278 spacious residential units of the company have been occupied by state police staff. The rents against these residential rented units have accumulated to more than Rs one crore.

Although top management officials are tight-lipped over receiving undue pressure from local politicians to allow non-BHEL people to enjoy privileges at par with those available to BHEL employees, but admits, "a major share of our power consumption goes to slum-dwellers in the proximity. It comes from our accounts."

The top management has plausible reasons, most employees are now contractual and facilities and privileges are now availed by non-BHEL employees. "If a 'thanedar' (station house pfficer) in Bhel township area is transferred, he does not relinquish his residential quarter for years. Also, his replacement officer demands another accommodation," another top executive said.

Besides, facilities like spacious parks and gardens, shops, water and electricity are available even to many slum-dwellers that have mushroomed in the proximity of the unit that took shape in 1957, the BHEL insiders have said.