Inside view of the NGEF (Hubli) Ltd plant at Rayapur near Dharwad.
Credit: DH Photo
Hubballi: Though having the credit of supplying power distribution transformers to ambitious projects like Central Vista in New Delhi and Asia's largest airport coming up near Jewar in Uttar Pradesh, and induction motors to premier organisations like ISRO, the NGEF (Hubli) Ltd located at Rayapur between Hubballi and Dharwad is struggling to increase production due to lack of modern machinery, deteriorating plant building, and accumulated loss getting bigger.
One of the very few public sector undertakings (PSUs) in the region, this firm is awaiting grants from the government, for a resurgence by enhancing production capacity and sustainability. Its requirement of grants for machinery replacement, building repairs and working capital, which was at Rs 20 crore three years back, has now reached Rs 30 crore.
NGEF (Hubli) Ltd authorities say, accumulated loss has crossed Rs 17 crore mainly due to the payment of retirement benefits, though marginal operational profit is being recorded in recent years. The firm had Rs 73 core business orders in 2023-24.
Some of the machinery are very old ones shifted from Bengaluru-based main NGEF which was closed down in 2002-03. Along with modern machinery, working capital and building repairs are also needed at the transformer and motor manufacturing and repair plant, mainly to be able to supply higher capacity devices against bulk orders in a short duration, they said, adding that revenue at present is sufficient only to runs regluar operations and to pay salary.
"A proposal seeking Rs 30 crore, including Rs 13 crore for new machinery and plant renovation, and Rs 17 crore working capital, is submitted to the government. We also need Rs 12 crore grants against gratuity, leave encashment and other benefits paid to retired employees. We need financial support from the government for the firm to operate vibrantly," says NGEF (Hubli) Ltd Managing Director S H Naregal.
As the NGEF (Hubli) Ltd is receiving more orders from North India, and its transformer manufacturing plant at Bathinda in Punjab run by an outsourced agency is getting overloaded, the firm is also making efforts to have similar plants at Prayagraj in Uttar Pradesh and Bhiwadi in Rajasthan. It also has repair units in Belagavi and Bengaluru, he added.