HEC’s future in jeopardy as salaries remain unpaid 

HEC (Heavy Engineering Corporation) is one of India’s oldest public sector units, with its headquarters located in Ranchi, Jharkhand. It is a prominent supplier of equipment to major steel plants across the country. However, for the past few months many employees are facing a salary delay from the authorities.

As per media reports, approximately 2,700 workmen and 450 executives have not received their salaries for over a year now. As of April 2023, officer grade workers were paid for the month of February 2022. On the other hand, workmen received only half of their pay for May 2022. 

The affected employees have been relying on their provident fund earnings to sustain themselves. Regarding the release of all the pending salaries, HEC Officers’ Association has engaged in three rounds of talks with the management regarding the release of salaries, but no resolution has been reached thus far. The salary delay issue continues to persist at HEC.

Moreover, the association has also sought assistance from local BJP leaders and met with Mahendra Nath Pandey, the minister for heavy industries, in February. During the meeting, the association representatives presented a memorandum outlining proposals to revive and modernise HEC. The memo suggested merging HEC with entities like the Railways, BHEL (Bharat Heavy Electricals), or incorporating it under the Department of Atomic Energy (DAE). However, no progress has been made on these suggestions thus far.

There is speculation that the government’s focus on private capital might be the reason for HEC’s neglect. It’s said that divesting HEC would benefit private players but increase project costs in defence, space, steel, and atomic energy sectors currently handled by HEC. HEC occupies 5,000 acres of land and used to have 12,000 residential quarters for its employees and their families.