HEC to receive working capital from NSCL, pending payments to be cleared this month

State-owned Heavy Engineering Corporation (HEC) is set to receive working capital support from NSCL, with pending salary and dues payments to employees expected to be cleared within the current month, according to officials familiar with the development.

The assurance came after discussions between HEC management and representatives of eight labour unions, who met to review the company’s financial position and payment schedule. Union leaders were informed that funds from NSCL would be routed to HEC to ease the immediate cash crunch and enable clearance of outstanding liabilities.

Officials said HEC employees are likely to receive pending payments in phases, beginning with salary arrears. Medical insurance dues, which had remained unpaid, are also expected to be settled this month. The management indicated that once the working capital support is received, priority would be given to employee-related payments.

Union representatives said HEC has been facing a prolonged financial crisis, resulting in delays in salaries, insurance premiums and other statutory dues. They noted that despite repeated assurances in the past, payments had not materialised, forcing workers to continue pressing for concrete timelines.

During the meeting, HEC management also spoke about steps being taken to revive production and improve the company’s order book. Officials said efforts are underway to enhance utilisation of existing facilities and secure new projects to stabilise operations and revenue flow.

Union leaders, however, expressed concern over the slow pace of revival and warned that prolonged delays in payments could trigger renewed agitation. They said employees have already endured severe financial hardship and expect commitments made by the management to be honoured within the stated timeframe.

HEC, once a flagship public sector unit in heavy engineering and capital goods manufacturing, has struggled in recent years due to declining orders and mounting losses. The proposed infusion of working capital from NSCL is being seen as a short-term relief measure, even as questions remain over the company’s long-term turnaround plan.

For now, workers are cautiously optimistic, with union representatives stating that they will closely monitor whether the promised payments are actually credited before the end of the month.