SICK COMPANY

Bharat Wagon and

Engineering
Limited PRESENTATION BY
MANUKIRAN S
727821TPMB109
II MBA B
 Bharat Wagon and Engineering
Limited

 Bharat Wagon and Engineering Limited (BWEL) is a Public Sector

Undertaking (PSU) of the Government of India and is a subsidiary
of Bharat Bhari Udyog Nigam. The company was established on 4
December 1978 after taking over and merging two sick companies - Arthur
Butler & Co and Britannia Engineering Company.
 At one time, BWEL was the largest rail wagon manufacturer in India. In
fiscal 2006, the company enjoyed aggregated revenues of ₹154.4
million (US$1.9 million).
PLANTS

 Headquartered in Patna, the company has two manufacturing plants, both

located in Bihar, one in Muzaffarpur and the other in Mokama. Both of
these plants are located directly next to railway stations and they come
equipped with railway sidings and other facilities such as assured power
supply. The Muzaffarpur plant sits on prime urban land in the heart of the
city. The Mokama plant, on the other hand, is situated in the middle of a
forested area
HOW IT CAME IN TO A SICK
INDUSTRY?
In December 2000, the company was referred to Board for Industrial and
Financial Reconstruction (BIFR). By this time, The company had been
running at loss for many years. It was finally declared as a sick unit in year
2002. The Government of India planned to sell Muzaffarpur plant of the
Company in 2002 to the private sector, but could not do so after resistance
from employees and trade unions. The administrative control of M/s Bharat
Wagon & Engg Co Ltd (BWEL), Patna is transferred from the Department of
Heavy Industry, Ministry of Heavy Industries and Public Enterprises to
the Ministry of Railways 13 August 2008. In August 2017, on recommendation
of NITI Aayog, the Cabinet Committee on Economic Affairs announced the
closure of loss-making BWEL
 Press Information Bureau
Government of India
Cabinet Committee on Economic Affairs 
 The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved
the closure of loss-making Bharat Wagon and Engineering Company (BWEL), a
Central Public Sector Enterprise under the Ministry of Railways.
 “626 employees of BWEL will be benefited from the voluntary retirement scheme
to be offered at 2007 pay scale. The government will have to provide a one-time
grant of ₹151.18 crore towards severance package and for clearing the current
liabilities of the company,” it said in a statement.
 Meanwhile, the Cabinet has approved transfer of 40 acres of land of Airports
Authority of India land at Dahisar to Mumbai Metropolitan Region Development
Authority (MMRDA) for its metro shed swapping with 40 acres of State
Government land at Gorai, Mumbai. 
BALANCE SHEET