REport 14 (1) (1)

A STUDY ON
ASSESSMENT OF MSME PAYMENT MANAGEMENT

THROUGH TReDS PLATFORM AT BHEL (HPVP)
With reference to BHARAT HEAVY ELECTRICALS LIMITED

Project report submitted in partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
PAILA PHANENDRA KUMAR
2023006262
GANDHI INSTITUTE OF TECHNOLOGY AND

MANAGEMENT
VISAKHAPATNAM
Under the esteemed guidance of
Dr. Rahmi Ranjan
Assistant Professor
Department of Finance
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Table of contents:
S. No CONTENTS PAGE No.
1 Title Page 1
2 Table of contents 2
3 Declaration by Student 3
4 Certificate 4
5 Acknowledgement 5
6 Chapter 1: Theoretical Framework 6
7 Chapter 2: Industry and company profile 14
8 Chapter 3: The present study/Methodology 27
9 Chapter 4: Data analysis and interpretation 45
10 Chapter 5: Findings, suggestions and conclusion 73
11 Bibliography 77
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DECLARATION BY STUDENT
I, PAILA PHANENDRA KUMAR, a student of Master of Business Administration (MBA)

(2023-2025), GITAM School of Business (GSB), GITAM (Deemed to be university), hereby
declare that the project work initiated on “ASSESSMENT OF MSME PAYMENT
MANAGEMENT THROUGH TReDS PLATFORM AT BHEL” at Bharat Heavy Electrical
Limited (HPVP) VIZAG is a genuine work done by me in partial fulfillment for the requirement
of the degree of Master of Business Administration. I confirm that this work has not been
published or submitted elsewhere for the award of any degree in part or full.
Place: VISAKHAPATNAM P. PHANENDRA KUMAR

Date: (2023006262)
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CERTIFICATE
This is to certify that the project report titled “ASSESSMENT OF MSME PAYMENT
MANAGEMENT THROUGH TReDS PLATFORM AT BHEL with reference to, Bharat
Heavy Electrical Limited (HPVP)”is an original work carried out by PAILA
PHANENDRA KUMAR (Reg no: 2023006262), with proper guidance and supervision, in
partial fulfillment for the award of the degree of Masters of Business Administration by
GITAM School Of Business (GSB), GITAM (Deemed to be university), Visakhapatnam
during the academic year 2023-2025.
Dr. Rahmi Ranjan Panigrahi
Asst.professor
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ACKNOWLEDGEMENT
I thank Dr. Raja P Pappu, Dean& Director, GITAM School of Business, GITAM (Deemed
to be University), for providing me with this opportunity.
I would also like to sincerely thank Mr. Suresh babu (Asst manager- Accounts department
BHEL(HPVP)) for his essential input and unconditional support throughout the project.
I sincerely thank Dr. Rashmi Ranjan Panigrahi for his constant supervision, positive
encouragement, and helpful recommendation in finishing this project effectively.
I want to convey my gratitude to GITAM School of Business and BHARAT HEAVY
ELECTRICAL LIMITED (HPVP) for encouraging me to obtain practical experience by
working in an appropriate environment.
I also want to thank my family, friends, and employees of the company, who helped me with
the project and for giving me valuable insights directly and indirectly.
P. PHANENDRA KUMAR
2023006262
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Chapter 1: Theoretical Framework
The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and
dynamic sector of the Indian economy over the last five decades. It contributes significantly to
the economic and social development of the country by fostering entrepreneurship and
generating large employment opportunities at comparatively lower capital cost, next only to
agriculture. MSMEs are complementary to large industries as ancillary units and this sector
contributes significantly to the inclusive industrial development of the country. The MSMEs are
widening their domain across sectors of the economy, producing diverse range of products and
services to meet demands of domestic as well as global markets. The Ministry of Micro, Small &
Medium Enterprises (M/o MSME) envisions a progressive MSME sector by promoting growth
and development of the Sector, including Khadi, Village and Coir Industries, in cooperation with
concerned Ministries/Departments, State Governments and other Stakeholders, through
providing support to existing enterprises, adopting cutting edge technologies, and encouraging
creation of new enterprises. A few statutory and non-statutory bodies work under the aegis of the
Ministry of MSME. These include the Khadi and Village Industries Commission (KVIC) and the
Coir Board besides National Small Industries Corporation (NSIC), National Institute for Micro,
Small and Medium Enterprises (NIMSME) and Mahatma Gandhi Institute for Rural
Industrialization (MGIRI).The Ministry of MSME runs various schemes aimed at financial
assistance, technology assistance and upgradation, infrastructure development, skill development
and training, enhancing competitiveness and market assistance of MSMEs.
MSME DEFINTION: Union Ministry of Micro, Small and Medium Enterprises (M/o MSMEs)
has issued Gazette notification to pave way for implementation of the upward revision in the
definition and criteria of MSMEs in the country. The new definition and criterion will come into
effect from 1st July 2020.
After 14 years since the MSME Development Act came into existence in 2006, a revision in
MSME definition was announced in the Atmnirbhar Bharat package on 13th May 2020. As per
this announcement, the definition of Micro manufacturing and services units was increased to
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Rs. 1 Crore of investment and Rs. 5 Crore of turnover. The limit of small unit was increased to
Rs. 10 Crore of investment and Rs 50 Crore of turnover. Similarly, the limit of medium unit was
increased to Rs. 20 Crore of investment and Rs. 100 Crore of turnover. The Government of India
on 01.06.2020 decided for further upward revision of the MSME Definition. For medium
Enterprises, now it will be Rs. 50 Crore of investment and Rs. 250 Crore of turnover.
This notification shall come into effect from 01.07.2020.
Previously
(i) a micro enterprise, where the investment in plant and machinery does not exceed
twenty-five lakh rupees.
(ii) a small enterprise, where the investment in plant and machinery is more than
twenty-five lakh rupees but does not exceed five crore rupees: or
(iii) a medium enterprise, where the investment in plant and machinery is more than
five crore rupees but does not exceed ten crore rupees.
(b) in the case of the enterprises engaged in providing or rendering of services, as—
(i) a micro enterprise, where the investment in equipment does not exceed ten lakh rupees.
(ii) a small enterprise, where the investment in equipment is more than ten lakh rupees but does
not exceed two crore rupees: or
(iii) a medium enterprise, where the investment in equipment is more than two crore rupees but
does not exceed five crore rupees.
CLASSIFICATION OF MSMEs:
classification Micro Small Medium
Manufacturing Investment in Plant and Investment in Plant and Investment in Plant and
Enterprises Machinery or Machinery or Machinery or
and Equipment: Equipment: Equipment:
Enterprises Not more than Rs.1 Not more than Rs.10 Not more than Rs.50
rendering crore and Annual crore and Annual crore and Annual
Services Turnover; not more than Turnover; not more than Turnover; not more than
Rs. 5 crores Rs. 50 crores Rs. 250 crores
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The existing criterion of definition of MSMEs is based on the MSMED Act, 2006. It was
different for manufacturing and services units. It was also very low in terms of financial limits.
Since then, the economy has undergone significant changes. After the package announced on
13th May 2020, there were several representations saying that the announced revision is still not
in line with market and price conditions and hence it should be further revised upwardly.
Keeping in mind these representations, Prime Minister decided to further increase the limit for
medium Units. This has been done to be realistic with time and to establish an objective system
of classification and to provide ease of doing business.
Also, a new composite formula of classification for manufacturing and service units has been
notified. Now, there will be no difference between manufacturing and service sectors. Also, a
new criterion of turnover is added.
Ministry officials said that the new definition will pave way for strengthening and growth of the
MSMEs. Particularly, the provision of excluding the exports from counting of turnover will
encourage the MSMEs to export more and more without fearing to lose the benefits of a MSME
unit. This is expected to exponentially add to exports from the country leading to more growth
and economic activity and the creation of jobs.
Detailed Guidelines and Clarifications as regards the classification in pursuance of the changed
definition are being issued separately by the MSME Ministry.
WHO CAN BE GET REGISTERED UNDER MSME:
The following entities are eligible for MSME registration:

• Individuals, startups, business owners, and entrepreneurs
• Private and public limited companies
• Sole proprietorship
• Partnership firm
• Limited Liability Partnerships (LLPs)
• Self Help Groups (SHGs)
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• Co-operative societies
• Trusts
All manufacturing, service industries, wholesale, and retail trade that fulfil the revised MSME
classification criteria of annual turnover and investment can apply for MSME registration. Thus,
the MSME registration eligibility depends on an entity’s annual turnover and investment.
MSME (Udyam)registration process:

Registration process:
(1) The form for registration shall be as provided in the Udyam Registration portal.
(2) There will be no fee for filing Udyam Registration.
(3) Aadhaar number shall be required for Udyam Registration.
(4) The Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the
managing partner in the case of a partnership firm and of a Karta in the case of a Hindu
Undivided Family (HUF).
(5) In case of a Company or a Limited Liability Partnership or a Cooperative Society or a
Society or a Trust, the organization or its authorized signatory shall provide its GSTIN and PAN
along with its Aadhaar number.
(6) In case an enterprise is duly registered as an Udyam with PAN, any deficiency of
information for previous years when it did not have PAN shall be filled up on self-declaration
basis.
(7) No enterprise shall file more than one Udyam Registration: Provided that any number of
activities including manufacturing or service, or both may be specified or added in one Udyam
Registration.
(8) Whoever intentionally misrepresents or attempts to suppress the self-declared facts and
figures appearing in the Udyam Registration or updating process shall be liable to such penalty
as specified under section 27 of the Act.
REGISTRATION OF EXISITING ENTERPRISES:

(1) All existing enterprises registered under EM (Entrepreneurs Memorandum)–Part-II or UAM
(Udyog Aadhar memorandum) shall register again on the Udyam Registration portal on or after
the 1st day of July 2020.
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(2) All enterprises registered till 30th June 2020 shall be re-classified in accordance with the
notification.
(3) The existing enterprises registered prior to 30th June 2020, shall continue to be valid only for
a period up to the 31stday of March 2021.
(4) An enterprise registered with any other organization under the Ministry of Micro, Small and
Medium Enterprises shall register itself under Udyam Registration.
UPDATION OF INFORMATION:
(1) An enterprise having Udyam Registration Number shall update its information online in the
Udyam Registration portal, including the details of the ITR and the GST Return for the previous
financial year and such other additional information as may be required, on self-declaration
basis.
(2) Failure to update the relevant information within the period specified in the online Udyam
Registration portal will render the enterprise liable for suspension of its status.
(3) Based on the information furnished or gathered from Government’s sources including ITR or
GST return, the classification of the enterprise will be updated.
(4) In case of graduation (from a lower to a higher category) or reverse-graduation (sliding down
to lower category) of an enterprise, a communication will be sent to the enterprise about the
change in the status.
(5) In case of an upward change in terms of investment in plant and machinery or equipment or
turnover or both, and consequent re-classification, an enterprise will maintain its prevailing
status till expiry of one year from the close of the year of registration.
(6) In case of reverse-graduation of an enterprise, whether as a result of re-classification or due
to actual changes in investment in plant and machinery or equipment or turnover or both, and
whether the enterprise is registered under the Act or not, the enterprise will continue in its
present category till the closure of the financial year and it will be given the benefit of the
changed status only with effect from 1st April of the financial year following the year in which
such change took place.
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STATEWISE TOP 10 UDYAM REGISTRATIONS
4500000
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
0
PERCENTAGE WISE SECTORS
SMALL MEDIUM
3% 5%
MICRO
92%
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BENEFITS OF REGISTRATION AS MSME(UDYAM):
1. MSME enterprises can get finance facilities from Banks without collateral requirements.
2. Schemes by the Central Government for the development of MSMEs
3. Subsidies and Government Schemes to promote specific industries.
4. Concession/ subventions on Bank Interest and Debt servicing
5. Concession on Taxation
6. Preference in procuring Government tenders,
7. Stamp duty and Octroi benefits,
8. Concession in electricity bills
9. Reduced fees for Trademark registration.
10. No more delayed payment troubles.
11. Time-bound resolution of disputes with Buyers through conciliation and arbitration.
PROBLEMS FACED BY THE MSME:

1. Financial Issues
 Small companies in India have limited existing capital or a significant volume of valuable
assets. Hence, access to finance remains challenging for MSMEs. These financial issues
make raising immediate funds through a business loan problematic.
 Without funds, they either have to reduce their expenses or shut down amid tight
competition. If an MSME company does not have enough profits or positive cash flow, it
may suffer because of heightened financial issues and lower liquidity.
2. Infrastructure
 Every MSME requires infrastructure, such as a factory or an office, to conduct business
activities. However, such infrastructure is expensive and requires adequate capital.
Although business loans are available, MSMEs find it tough to get tier business loans
approved without a high turnover and other loan factors.
3. Dynamic Market
 New startups and other e-commerce companies are entering and increasing the
competition for small companies in the MSME sector. The added competition has made
the dynamic market factors volatile and can negatively affect the MSME’s operations.
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Amid such an active market, if a small business is not doing well and earning constant
profits, it may have to shut down amid a cash crunch.
INITATION BY GOVERNMENT TO OVERCOME THE FINANCIAL PROBLEMS:

1. Delay in getting payments is one of the perennial problems faced by MSMEs. To address
this issue, the Reserve Bank introduced the Trade Receivables Discounting System
(TReDS) in 2014.
2. TReDS is an electronic platform where receivables of MSMEs drawn against buyers
(large corporates, PSUs, Government departments) are financed through multiple
financiers at competitive rates. This is done through an auction-based mechanism.
3. To widen the scope of TReDS and to incentivize more players to be part of this platform,
banks’ exposure through this platform were brought under priority sector lending in
2016.
4. Presently, three entities [viz., Receivables Exchange of India Ltd. (RXIL), The TReDS, is
licensed by the Reserve Bank are operating the platform for more than two years.
5. Further, the Reserve Bank recently allowed ‘on tap’ authorization to entities desirous to
provide platforms for TReDS. Hence, in coming years, competition in receivables
discounting space is bound to increase with the entry of new players. This requires the
corporates, both in the public and private sector, to join the TReDS platform and make
the system more efficient.
TRADES RECIEVABLES DISCOUNTING SYSTEM(TReDS):

 Trades receivable Discounting system is an invoice discounting platform set up by the
Reserve Bank of India (RBI)for regulating the trade receivables between Micro, Small &
Medium Enterprises (MSMEs), large organizations and financiers.
 MSMEs still struggle with unpaid invoices from suppliers. TReDS is an online platform
which allows MSME suppliers to discount their invoices, enabling them to receive
payments before their due date. The RBI launched TReDS in 2014.
The key objective of the TReDS is to facilitate the financing of invoices of MSME vendors
drawn on big organizations and other corporates, including Public Sector Undertakings (PSUs)
and Government Departments, by discounting by the financiers. The participants in this system
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work together to facilitate, accept, discount, and settle the invoices. TReDS’ primary purpose is
to help MSMEs manage their working capital requirements.
PARTICIPANTS OF TReDS:
SELLER ONLY MSMEs
BUYER Any ENTITY
FINANCERS NBFCs, factors and other financial institutions as permitted by RBI.
S.N. Participant Definition of Participant Benefits of TReDS

The Sellers should be an a. Discounting of invoices
MSME as defined under without recourse to Seller.
Section 7 of the Micro, b. Competitive rates based
Small and Medium on the strength of Buyer
Enterprises Development from multiple Financiers.
1 Seller Act, 2006 (and subsequent c. No collateral security
modifications in the same as required.
amended from time to d. Digital, paperless and
time), supplying goods and / timely financing of
or services to Buyers OR receivables
Sellers as may be defined
by TReDS guidelines issued
by RBI.
Corporates and other a. Alternate financing
Buyers including option for their MSME
Government Departments payables.
2 Buyer and Public Sector b. Competitive rates from
Undertaking, and such other multiple Financiers
entities as may be defined (without any bilateral
by TReDS guidelines issued agreement with the
by RBI from time to time to individual Financier)
participate on the TReDS c. Compliance to MSMED
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platform as Buyers. Act d. Strengthen supplier
relationship
Banks, Non-banking a. Financing TReDS

Financial Company – qualifies for PSL benefit.
Factors and such other b. Access to Quality
3 Financier institutions as may be customers
defined by TReDS c. Lower risk of default
Guidelines issued by RBI to (under NACH Auto debit
participate on the TReDS feature available on
platform as Financiers. TReDS to recover the
dues).
BENEFITS OF TReDS TO MSME:

 Automated, transparent platform – Since the entire process is online, it is automated and
transparent, and no human intervention takes place, making the process free from any
malpractice.
 Paperless and hassle-free process – Since the entire process is over the web, there is
minimal paperwork for the MSME suppliers, and this reduction in paperwork makes it
hassle-free for them.
 Faster transaction and low turnaround time for financing – When compared to the
orthodox factoring set-up, TReDS offers faster approval for their invoices and immediate
payment against their trade receivables.
 Competitive price discovery – The entire process is driven by auction, which ensures the
MSME suppliers receive the best rates for their invoices.
 No follow-ups for payment – The MSME vendors don’t have to follow up for payment as
they get paid immediately once the invoices are approved.
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 Efficient working capital – As MSME vendors don’t have to wait till the due date of their
invoices to get paid, TReDS allows them to improve their liquidity.
 Widening financing options – TReDS has widened the financing options for MSME
vendors, limited to Bank loans, advance payments, etc.
MSME Units are requested to Onboard on TReDS Platform. Three available platforms are
1. www.rxil.in
2. www.m1xchange.com
3. www.invoicemart.com
RXIL (RECEIVABLES EXCHANGE OF INDIA LIMITED) REGISTRATION:

India’s first TReDS exchange platform, Receivables Exchange of India Limited (RXIL) is a joint
venture promoted by SIDBI – the apex financial institution for the promotion and financing of
MSMEs in India, and the NSE – the premier stock exchange in India. RXIL facilitates financial
growth in the country by providing MSMEs access to credit. It has endeavored to revamp the
cash flow issue of the MSME sector by streamlining their credit cycle by helping them receive
their payments with zero delays. RXIL also empowers small businesses to their growth potential
by accelerating liquidation of their receivables. It offers an innovative platform for buyers,
sellers, and financiers to collaborate seamlessly.
STEPS TO REGISTER FOR BUYERS AND FINANCERS:

Buyers/financers looking to avail the benefits of TReDS need to first complete the RXIL
Registration.
Step 1. The buyer and financer need to obtain the onboarding kit by email from the RXIL
executive.
Step 2. The buyer or financer then needs to fill up the forms with the sign and stamp of the
authorized officials.
Step 3. The buyer or financer needs to collect the self-attested KYC documents (Proof of Identity
and Address) of all the individuals as mentioned in the onboarding form.
Step 4. The buyer or financer then needs to submit scanned copies of the aforesaid documents by
email to the RXIL executive.
Step 5. The buyer or financer needs to provide NACH auto debit mandate of a designated bank
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account.
Step 6. The buyer or financer then needs to lodge the aforesaid NACH auto debit mandate on
NPCI by the RXIL executive.
Step 7. The RXIL executive will then scrutinize all the above steps.
Step 8. After scrutinizing, the RXIL executive will feed the data into the system.
Step 9. The buyer or financer then needs to pay the one-time registration fee.
Step 10. Once all the above steps are completed, the buyer or financer needs to send all the
original documents to RXIL after receiving RXIL login ID and password.
Step 11. The RXIL nominated executive will visit the buyer or financer for Onsite verification
and Original Seen & Verified (OSV).
STEPS FOR SELLER TO GET REGISTERED IN RXIL:

Sellers looking to avail the benefits of TReDS need to first complete the RXIL registration.
Below are steps that a seller needs to follow:
Step 1. The seller first needs to visit the RXIL website and fill the application.
Step 2. Once the seller has filled out the application, the seller needs to provide the mobile
number used while doing the RXIL registration.
Step 3. Once the seller provides the mobile number, an OTP will be sent to the registered mobile
number, and the seller needs to enter the OTP to proceed further.
Step 4. Now, the seller needs to upload self-attested documents pertaining to oneself or the
entity. Listed below are the documents the seller needs to upload for KYC purposes.
Step 5. Apart from the self-attested documents, the seller needs to upload the documents listed in
the image below attested by the authorized officials.
Step 6. The seller now needs to review the uploaded documents along with the registration form
by the RXIL executive.
Step 7. Now, the seller needs to pay the one-time registration fee.
Step 8. Once all the above steps are completed, the seller needs to send all the original
documents to RXIL, after receiving RXIL login ID and password.
Step 9. The RXIL nominated executive will visit the seller for Onsite verification and Original
Seen & Verified (OSV).
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Transaction Process at RXIL
a. The Buyer for which the Seller is uploading invoices should be registered with RXIL as the
Buyer acceptance of invoices is mandatory on the platform.
b. The Buyer and Seller should understand and agree on the Master Agreement that there cannot
be any conflict of any kind related to the goods quality, quantity, delivery, etc. once the invoice
is uploaded on the platform and accepted by the Buyer/Seller before sending the auctioning
process.
c. A Buyer-Seller Link to be established between the Buyers and Sellers for a valid trade
agreement between the two parties.
d. The Financier must mandatorily set the credit / exposure limits for the Buyer on the platform
before they can do the bidding for those respective Buyers.
Major Modules of Transaction Process: Any transaction on the platform would undergo the
following 5 modules or broad processes:
a. Creation of Buyer Seller (BS) Link: A Buyer-Seller link is required to be created for
establishing the trade relationship between the Seller and the Buyer to carry out factoring
transactions on the TReDS platform. It defines how the transaction workflow e.g. Instrument
creation, conversion to Factoring Unit, financing of the Factoring Unit, etc. will happen and what
will be its terms and conditions between a set of Buyer and Seller for financing of invoices/FUs
on the platform.
b. Creation of Instrument / Factoring Unit (FU): Creation of “Factoring Unit” on TReDS
means the process through which Invoices and such other instruments as may be eligible for
factoring on TReDS from time to time representing sale and supply of goods and/or services by
Sellers to Corporate & other Buyers, are uploaded and accepted by the counter party (Buyer /
Seller) on the TReDS platform and converted into Factoring Units as per the prescribed process
for the purpose of factoring by the Financers.
c. Auctioning of Factoring Units (FUs) & Bid Acceptance: It defines whether the FU available
on platform is eligible for financing by financers through bidding process on the platform or not.
In this process, the FUs available for financing are available in the bidding queue and the
Financiers bid on the said FUs. The cost/interest-bearing party (Buyer/Seller) has the right to
accept the bids offered by the Financiers.
d. Settlement Management: Settlement is a process to generate the Obligations and effect
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actual transfer of funds for the Financier to make payment to Seller (Leg 1) and Buyer to make
payment to Financier (Leg 2) for all Factoring Units where bids have been accepted by
Seller/Buyer. All the settlements are routed through NPCI (National payments corporation of
India.)
e. Creation & Satisfaction of Charge with CERSAI: Trade receivable financed through a
TReDS, the creation of charge of the Assignment of Receivables and its satisfaction upon full
realization will be filed with Central Registry, by the TReDS on behalf of the Financier in such
manner as may be specified in the Regulation subject to payment of applicable charges by
Financier to RXIL.
Leg 1 & Leg 2 settlement of funds: For any type of transaction/s on the platform, fund transfer
from Financier to Supplier account is known as Leg 1 and the payment debited from account of
Buyer and credited to Financier’s account on the repayment due date is known as Leg 2
settlement of funds. Post Leg 2 settlement, the transaction is marked as closed.
NOTE:
i. The Seller can view the terms and conditions defined in BS link by the Buyer in their
login account and can either accept or reject the BS link. If the Seller rejects the BS link,
the Buyer will have to set up a new BS link for that respective Seller, the terms and
conditions of which are agreeable to both for carrying out factoring and financing
transaction on the platform. Once the Seller accepts the BS link, the Buyer can initiate the
instrument creation on the platform, which will flow for auctioning and financing on the
platform.
ii. Buyer needs to select the Seller from the list of the registered Sellers available on the
TReDS platform. If the name of the Seller is not available in the list, the Buyer may
request its Seller to get registered on the TReDS platform. Buyer can cross check the
details of the Seller through its GSTN and PAN which gets auto populated in BS Link.
iii. The Buyer has the option to avail the extended credit period only at the time of
instrument creation/approval.
iv. When a Buyer creates an instrument, the same must be approved by the Seller before
sending that instrument into auctioning window.
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v. In case if single party bears the financing cost, then the right of bid acceptance will be
with the cost bearing party. In case of cost splitting either the Buyer or Seller can accept
the bid as defined under BS Link.
vi. Cap Rate is the maximum rate acceptable to the Seller or Buyer (whoever is the interest
cost bearer) for financing of the trade receivables of the MSME Seller on the platform.
vii. Both Seller and the Buyer can define the Cap Rate for financing / factoring of trade
receivables on the TReDS platform. If the Seller is the cost bearer, then the Cap Rate
defined by the Seller then the Seller’s Cap Rate will be considered. If the Buyer is the
cost bearer, then Buyer’s Cap Rate will be considered.
viii. Buyer can define only one cap rate, while the Seller can define Cap Rate for each Buyer.
ix. In the Auto mode, bids can be accepted in two ways:
a) On Receipt of Bid: The system automatically accepts the first bid on the FU. In
cases where cap rate is defined by the Buyer/Seller for ‘On receipt of bid’ in the system, the
system will accept the bid as soon as it meets criteria of the Cap rate.
b) Cut-off Time: The system automatically accepts the best bid (lowest) at the Cut-off
time from all the bids quoted on that FU. In cases where cap rate is defined by
Buyer/Seller and cut-off mode is selected, the system accepts the best bid which either
matches the cap rate criteria or is lower than the cap rate.
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Transaction Process at RXIL:
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Types of Transaction Process on RXIL:
i. Interest borne by Seller (Factoring) - In factoring, the Seller/Buyer uploads the
invoices onto the RXIL platform and approved by counter party, a factoring unit is
created which contains necessary details of the invoice(s) and the terms and
conditions of discounting on platform. The said factoring unit is available to the
Financiers for bidding. In Factoring transaction, the Seller is the 100% interest-
bearing party and thus, the Seller selects the most suitable bid. The Financier pays to
the Seller within T+1 days of bid acceptance by the Seller. On the due date, the Buyer
pays the outstanding amount to the Financier. All the transactions on the TReDS
platform are handled through NPCI mechanism.
ii. In case of Factoring, the Seller initiates the process of financing of trade receivables
and generally bears in the interest or financing cost.
iii. Interest borne by Buyer (Reverse Factoring)- In a reverse factoring transaction,

Buyer/Seller uploads the invoices onto the RXIL platform and approved by counter
party, a factoring unit is created which contains necessary details of the invoice(s) and
the terms and conditions of discounting on platform. The FU so created is shared with
the Financiers. The Financiers bid for the FU. The Buyer in this case is the interest-
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bearing party and thus, chooses the most suitable bid. The Financier pays to the Seller
within T+1 days post bid acceptance by the Buyer. The Buyer settles the payment
with the Financier on a repayment due date. All the transactions on the TReDS
platform are handled through NPCI mechanism.
iv. In case of Reverse Factoring, the Buyer initiates the process of financing of trade
receivables of Sellers. The Buyer may or may not bear the interest or financing cost
as may be agreed between the Buyer and Seller.
TERMS AND CONDITIONS:

Liability of buyer to make payment:(section 15)
Where any supplier supplies any goods or renders any services to any buyer, the buyer shall
make payment therefor on or before the date agreed upon between him and the supplier in
writing or, where there is no agreement in this behalf, before the appointed day:
Provided that in no case the period agreed upon between the supplier and the buyer in writing
shall exceed forty-five days from the day of acceptance or the day of deemed acceptance.
Date from which and rate at which interest is payable. (section 16)
Where any buyer fails to make payment of the amount to the supplier, as required under section
15, the buyer shall, notwithstanding anything contained in any agreement between the buyer and
23
the supplier or in any law for the time being in force, be liable to pay compound interest with
monthly rests to the supplier on that amount from the appointed day or, as the case may be, from
the date immediately following the date agreed upon, at three times of the bank rate notified by
the Reserve Bank.
i. “The day of acceptance” means,
(a) the day of the actual delivery of goods or the rendering of services; or
(b) where any objection is made in writing by the buyer regarding acceptance
of goods or services within fifteen days of the day of the delivery of goods or the rendering of
services, the day on which such objection is removed by the supplier.
ii. “The day of deemed acceptance” means, where no objection is made in writing by the
buyer regarding acceptance of goods or services within fifteen days from the day of the
delivery of goods or the rendering of services, the day of the actual delivery of goods or
the rendering of services.
iii. “The appointed day” means the day immediately after the expiry of the 15 days, from
the day of acceptance or from the day of deemed acceptance of any good or services.
iv. Goods Acceptance Date: The date the goods are delivered, or services are rendered.
v. Statutory Due Date: The absolute deadline for the buyer to make payment, as per the
MSMED Act
vi. Invoice Due Date: The due date for payment based on the agreed credit period.
vii. Factoring/Financing Due Date: The date the factoring/financing transaction is due,
typically the same as the Invoice Due Date
viii. while the invoice due date is set by the seller and indicates when payment is expected,
the statutory due date is a legally mandated deadline that must be followed to fulfill
legal requirements, especially in the context of specific regulations like the MSMED
Act, 2006.
ix. The invoice due date pertains to the payment between the buyer and the seller directly,
while the factoring due date is related to the payment between the buyer and the
factoring company in the context of invoice factoring.
x. If payments are not made to the MSME in above time limit, then interest is payable @
3 times the bank rate notified by RBI.
24
xi. According to the MSME Act, buyers must now pay the suppliers within 45 days of
receiving the goods/service.
HOW MSME PAYMENTS ARE MANAGED BY BHEL
1) In BHEL, the first major step is procurement of materials from the Vendors.
2) The payment terms of BHEL for MSME is, for micro & small is 45 days and for Medium is
60 days.
3) The payment terms for non-MSME are 90 days.
4) The procurement of materials is done through the tendering process.
5) From the tender, the lowest price offered by the vendor is accepted.
6) After the acceptance of tender, the Purchase order with specific requirements and quantity is
issued to the vendor.
7) The vendor can be either a MSME or non-MSME.
8) After the acceptance of material from the vendor, BHEL will initiate the payment to the
respective vendor.
9) BHEL follows 2 methods of payment for MSME vendors.
i. RXIL
ii. Direct payment.
10) For non-MSMEs, the payment is made through the bank. (Direct payment).
25
TENDER NOTIFICATION
ALLOWS TENDERING AND ACCEPTS THE LOWEST

QUOTED PRICE
ISSUES THE PURCHASE ORDER
MSME NON-MSME
INVOICE INVOICE
TReDS ACCEPTANCE ACCEPTANCE
RXIL DIRECT DIRECT

PAYMENT PAYMENT
THROUGH TROUGH
BANK BANK
INVOICE
ACCEPTANCE
PAYMENT
DONE
THROUGH
TReDS
26
Chapter 2: Industry profile
INDUSTRIAL PROFILE
INDIAN POWER SEGMENT
Power is a necessary fuel for a growing economy. The Indian economy is on a rising path
targeting GDP growth rate between 7 and 7.5%. To achieve this growth, it is imperative that
proper power infrastructure is in place. India has the third largest generation in the world with an
installed capacity of over 344GWh, as on 31st March 2018 and also the third largest electricity
consumer, accounting for 6.46% of total global consumption of electricity was 1122 kWh in
2016. The industrial sector, due to increasing capacity additions, has the highest demand for
electricity across all sectors are likely to experience a steady increase in demand for electricity,
but the share of agriculture is expected to see a decline in the coming years
FUTURE TREND
Global Electricity Market:
The global EE industry consists of the following two segments:
 The global heavy electrical equipment market incl. boilers, turbines, Generators (BTG),
Wind turbines, Solar power systems, etc.
 The global Transmission and Distribution (T&D) equipment market, incl. Electric power
cables, Transformers, Electrical switchgear, Transmission line towers, Conductors,
Control equipment, meters etc.
The demand for electricity worldwide is projected to grow at an annual rate of 2.4% for the
period 2009-2035, driven by economic and population growth. Over 80% of growth between
2009-2035 to be non-OECD countries
WORLD ELECTRICITY CONSUMPTION IN TWh
27
Consumption
35000 31723
30000
25000
20000 17217
15000
10084
10000
5000
0
1990 2009 2035
Source: The International Energy Agency’s World Outlook 2011 report.
INDIAN POWER SECTOR:

The demand for electrical equipment in India is expected to witness a significant expansion on
the back of the growth of the power sector. India has the fifth largest power generation capacity
in the world. The country ranks globally in terms of electricity production. In May 2018, India
ranked 4th in the Asia Pacific region out of 25nations on an index that measures their overall
power. Electricity production in India reached 1,201.543 billion Units (BU) during FY18.
Renewable energy is fast emerging as a major source of power in India. Wind energy is the
largest source of renewable energy in India, accounting for 52.27% of total installed capacity
(62.85 GW). There are plans to double wind power generation capacity to 60GW by2022. India
has also raised the solar power generation capacity addition target by five times to 100 GW by
2022. The Union Government of India is preparing a ‘rent a roof’ policy for supporting its target
of generating 40 gigawatts (GW) of power through solar roof top projects by 2022. All states and
union territories of India are on board to fulfil the Government of India’s vision of ensuring 24x7
affordable and quality power for all by march2019. Over 280 million LED bulbs were distributed
to consumers in India by Energy Efficiency Services Limited (EESL) under Unnati Jyoti by
Affordable LEDs for All (UJALA). The Government of India has been supportive to growth in
the power sector
The Cabinet Committee on Economic Affairs (CCEA) has approved commercial coal mining for
private sector and the methodology of allocating coal mines via auction and allotment, thereby
prioritizing transparency, ease of doing business and ensuring the use of natural resources for
28
national development. The Ministry of power has passed the guidelines for tariff based
competitive bidding process for procurement of power from grid connected wind power projects.
The Government of India is planning to invite bids for the largest solar tender in the world, for
installing 20gigawatts (GW) of solar power capacity, to give a boost to manufacturing of solar
power equipment in India. Foreign participation in the development and financing of generation
and transmission assets, engineering services, equipment supply and technology collaboration in
nuclear and clean coal technologies is also expected to increase
INDIAN ELECTRICAL EQUIPMENT INDUSTRY

A SWOT ANALYSIS
STRENGTHS
 Diversified, mature and strong manufacturing base, with robust supply chain, fully
equipped to meet domestic demand and capacity addition.
 Rugged performance design of domestic electrical equipment to meet tough network
demand.
 Good mix of large private and public sector enterprises, MNC’s and SME’s.
 Domestic presence of major foreign players, either directly or through technical
collaborations with domestic manufacturers.
 State-of-the-art technology in most sub-sectors at par with global standards.
 Domestic availability of low-cost skilled manpower.
 Emerging global reputation of Indian electrical equipment for sourcing products and
components and of Indian transmission and other EPC constructers.
WEAKNESSES
 Upward volatility in raw material and other metal prices.
 High cost, poor quality and shortage of raw materials in other inputs.
 Dependence of some sub sectors on import of critical inputs.
 Low investment in R&D and no structured long-term approach for basic research.
 Looming shortage of skilled technical manpower and low productivity.
 Inadequate and costly domestic testing and calibrating facilities for electrical equipment.
29
 Lack of standardization of product specifications, design parameters and ratings for
generations and distribution equipment across different utilities.
 Bunching of orders by utilities, because of factors beyond their control such as
government approvals, release of funds etc., resulting in sub optional utilization of
available domestic manufacturing capacity.
 Badly designed and diverse procurement policies and qualifying criteria of utilities.
 Outdated tendering procedures and contract awarding based on L1 bidder by utilities.
OPPORTUNITIES
 Domestic demand: to sustain the envisaged annual GDP growth rate of 8-9% over the
next 20 years, it has been estimated that India will require increasing its electrical
generation capacity by around 5times by 2032.
 Rapid growth in metros, airports and other infrastructure projects is expected to generate
huge demand for matching BTG and T&D equipment.
 External demand: Currently, share of India’s exports in the global market is less than 5%.
With the electricity sector being a sunrise sector across the entire developing world, there
exists a significant export potential for domestic industry.
THREATS
 Problems of fuel linkages, land acquisition, environmental clearances etc., are impeding
growth in the country’s power sector which may lead to less than anticipated growth in
demand for electrical equipment.
 Absence of a level playing field for the domestic industry to compete with escalating
imports of electrical equipment.
 Poor financial health of DISCOM’s and very high Aggregate Technical & Commercial
(AT&C) losses may have cascading effect on the growth of BTG as well T&D equipment
industry.
 Rising global concerns on the trade-offs between economic growth, energy security and
environmental sustainability.
30
TECHNOLOGY INTAKE OF BHEL-HPVP FROM POWER SEGMENT
Experienced in design of columns, multi-layer vessels, heat exchangers, liquid oxygen and
nitrogen unit, evaporation plants, digesters, mounded vessels, Sulphur recovery unit, gas
dehydration, desalters, heater treaters, crude stabilization unit, storage vessels etc. backed by
technology absorption and adaption from the world leaders.
1. Skoda export, Czechoslovakia.
2. L’Air Liquid, France.
3. KAMYR-AB, Sweden.
4. ARAMCO.
5. NRDC, India.
6. Hahn & CLAY, USA etc.
Boilers:
BHEL-HPVP absorbed technology from BHEL for industrial boilers design, engineering,
manufacturing, erection, testing and commissioning of boilers with horizontal transfer of
technical know-how from BHEL. Capacities up to 200 TPH in low, medium and high-pressure
ranges with super heat up to 540 degree centigrade equipped with all modern features like
1. FSSS (Furnace Safeguard Supervisory System).
2. Oil storage, pumping and heating units.
3. Firefighting system.
4. Erection and commissioning of STGs (Steam Turbine Generator).
5. Dynamic simulation of power plant.
Fired heaters:
Technology absorption from ABB lummus heat transfer (LHT) for design and manufacture,
erection and commissioning of fire heaters in the following type.
1. Crude and vacuum heaters
2. Coker heaters
3. Hot oil heaters
4. Charge heaters
5. Recycle heaters
31
MARKET PROFILE
This covers the product range of customer profile and competitor’s profile.
Customer Profile
BHEL-HPVP’s clientele includes
 Public
 Private
 Cooperative
Sector organizations in almost all the core sectors of economy such as
 32 Fertilizer plants.
 22 Petroleum refineries.
 12 Petrochemical complexes.
 All major integrated stell plants in India.
 Oil and gas.
 Nuclear and defence etc.
Other major customers are from paper, power, non-ferrous, chemicals, pharmaceuticals,
synthetic fibers, coal, dairy, space sectors.
 NTPC
 STATE ELECTRICITY BOARDS
 IOCL
 ONGC
 GAIL-AURAIYA
 IFFCO and RCF
Competitors Profile
Competitors in Process plants:
 L&T
 GR Engineering.
 Lloyd steels
 ISGEC
 Godrej & BoyceCo
32
 mpetitors in Cryogenic plants:
 ICCP.
 Shanghai Oxygen, China
 L&T.
 Linde process systems, Germany.
 BOC, UK.
 Air Products, UK
 Kobe, Japan.
 Hitachi.
 HOPM<China.
Competitors in Boilers/Combustion system

 ISGEC.
 Babcock.
 Ignifluid Boilers.
SUPPLIERS
 SAIL.
 RINL.
 JSPL.
COMPANY PROFILE
OVERVIEW
Incorporation of the company : 1966
Primary objective : To manufacture custom built capital
Equipment for the Process
Industries such as Fertilizers,
Petrochemicals, Petroleum Refineries, and
Chemicals ETC.
Technical collaboration provided by : M/s SKODA EXPORT, CZECHOSLOVAKIA
Commencement of construction : 1968
33
Completion of construction : 1971
Commencement of production : 1971
Initial project cost : Rs. 17.5 crores
Initial product mix : Heat exchangers, Columns, Pressure vessels
: Technological structures, Piping etc.
Installed capacity : 23120 M.T
Turnover for the year 2020-2021 : Rs. 410 crores
Production facilities
Factory area : 197 acres
Total covered area : 90000 sq.m
Covered area of production shops : 56000 sq.m
Power requirements : 3000 KW from APSEB
No. of ancillary units : 11 units
BHEL HPVP with ISO 9001 accreditation is leading EPC Company in Southeast Asian region
serving following sectors:
 Refineries
 Petrochemicals
 Oil & Gas
 Steel & Metallurgy
 Power
 Nuclear
 Defense
 Paper and pulp
 Pharmaceuticals
 Cryogenics
 Process Plant & Equipment
 Boiler Plant & Equipment
 Systems
34
Important machinery
 The factory is provided with comprehensive and modern manufacturing and testing
facilities and suitable material handling equipment.
 The maximum crane lifting capacity 120 tones but loads up to 250 tones can be lifted
with improvised techniques.
 The maximum rolling capacity is 60 mm in cold conditions and 170 mm in hot
conditions.
Other critical equipment

 Deep drawing hydraulic press of 1600T capacity.
 Several welding rotators of capacity up to 250T.
 Tube fining machine.
 Different types of non-destruction testing equipment.
 Well-equipped physical and chemical laboratories.
Metrology section
 HCL super minicomputer, two minicomputers.
 56 CAD machines and 550Personal computers.
Employee welfare amenities

 Township area -151 acres.
 No. of quarters – 1192.
 20 bed hospital.
 Protected water supply.
 Underground drainage system.
 English medium school with CBSE syllabus.
 Telugu medium school with AP state syllabus.
 Special school for mentally handicapped children.
 Vocational training centre for mentally handicapped.
 Community centre for cultural activities and sports – open air theatre facilities.
35
 Function hall.
Diversification
 Originally established for fabrication of process equipment.
 As a step towards diversification, signed collaboration agreement with M/s L’Air liquid
of France in 1971 for manufacture of
 Air and gas separation plants.
 Cryogenic storage systems.
 Further diversified into the area of industrial boilers in the range of 50-200 TPH in
collaboration with M/s BHEL in 1981 based on the recommendation of the working
group constituted by DHL.
 Entered into the area of oil and gas processing systems in 1990 in collaboration M/s B.S
& B Engr. Co., USA.
Collaboration and absorption of technologies

Some of the significant collaborations of BHEL HPVP entered include:
 M/s BSL, France in respect of field erected cryogenic storage tanks.
 M/s Delas, France in respect of Deaerators.
 M/s ABB Lummus, Netherlands for heat transfer system.
Case-to-case tie-ups, BHEL HPVP entered into include:

 Evaporation from M/s Ecodyne corp., USA.
 Paper an plus digestors from M/s Kamyr AB, Sweden.
 Primary reformer from M/s Halder Topse , Denmark.
 Waste heat boiler from Borig, Germany.
 Feed water heater from Delas, France.
 Ammonia storage system from M/s KTI, Germany etc.
By absorbing know-how from various world-renowned collaborations, BHEL-HPVP upgraded
its status from mere fabricator of process equipment to that of an engineering company of
international repute.
36
PROJECTS OF NATIONAL IMPORTANCE EXECTED/UNDER EXECUTION
S. No Customer Project/Equipment
1 IOCL, Panipat Hydro cracker reactors-3 no.
2 IOCL, Panipat Reactor, generator and office chamber
3 IOCL, Panipat Reformer WHR package
4 IOCL, Mumbai 150 MT capacity LPC bullets
5 IOCL, Chennai Sphere
6 BOKARO STEEL PLANT Argon recovery unit
7 NRL, Numaligarh Air fin coolers/SS clad vessels, spheres etc
8 HPCL, Vizag CDU Heater with APH system/VDU heater
9 HPCL, VREP 2, Vizag Clad/CS columns/CS Heat exchangers etc
10 HPCL, Vizag Co-boiler
11 HPCL, Vizag Revamping of 50 TPH oil and gas fired boiler
12 HPCL, Mumbai 50 TPH Boiler
13 BPCL, Mumbai Nitrogen plant
14 BHEL, Trichy Boilers
15 Hyundai heavy industries, New Delhi Cryo nitrogen plant.
16 Space application centre, Ahmedabad 505m dia thermal vacuum system
17 Technimont ICB, Mumbai Nitrogen plant
18 Oswal chemical fertilizers, Paradeep Waste heat LP boilers
19 IFFCO, Kandla 15000 MT ATM ammonia storage tank
20 NALCO, Damanjodi Modification of evaporator batteries.
37
Product diversification
The company has undertaken several EC contracts on EPC/LSTK basis at various locations in
India and abroad. The company R&D department has developed technology for manufacture of
compact heat exchanger for the Light Combat Aircraft (LCA) under the funding by Aeronautical
Development Agency (ADA), BHEL-HPVP now with the technology acquired from BHEL
(Holding company), diversified into power plant equipment, viz. HRSG Boilers, Deaerators etc.
Major customers
 Fertilizer industry
 Petroleum refineries
 Petrochemical complexes
 Steel plants
 Chemical industries
 Power sector
 Nuclear, defence & space sector
Major competitors
 Larson and Turbo
 GR Engg.
 Llyod steel
 IOL
 INOX
 Linda, Germany
38
QUALITY
 BHEL is renowned for Quality and workmanship of its products.
LLOYD’S REGISTER OF INDUSTRIAL CLASS - 1
Certificate for fusion welded pressure vessels:
ASME U & U2 STAMPS on pressure vessels

ASME ‘S’ stamp for industrial boilers
National board of boiler and pressure ‘R’ stamp for repace of coded vessels
vessels inspectors, USA
Stami carbon Urea reactors
Halfor Topse Ammonia reactors and high-pressure heat
exchangers
Arabian American oil company Process plants
39
RESEARCH AND DEVELOPMENT
The R & D department was established in 1975 and is well equipped with hi-tech equipment to
cater to application of research in product development. R & D has developed 136 projects so
far. Some of the products commercialized include:
1. Titaning anodes
2. Titanium air bottles
3. Cryo vats
4. Individual quick-freezing unit
5. Super insulated piping
6. Super insulated crow storage tanks
7. D.M. water plants
A prestigious order for development of heat exchangers for light combat aircraft (LCA) phase-2
has been received from aeronautical development agency, Bangalore.
AWARDS AND ACHIEVEMENTS

Some of the awards received for excellence in R&D include:
 CIS award for R&D achievement in 1992-93
 “The Chelikani Achyuta Rao Memorial Award” from FAPCCI for individual
achievement in R&D effort in 1966 (Mr. B.S.V Prasad)
PRESENT STRENGTHS
 Excellent design and engineering capabilities
 State of art manufacturing facilities
 Accomplished image as a supplier of quality products in the domestic and international
markets
 High degree of customer confidence
 Technological tie-up arrangements
 Well trained and qualified work force
PLANS AND STRATEGIES

a. To grow as an Engineering, Procurement and Construction (EPC) company
40
b. To enlarge export business
c. To strive for continuous updating of technologies to be on par with international
companies
d. To change the work culture and to be compatible with market demands
CONSTRAINTS
 Dependence on imports even for common materials like boiler quality plates
 Port congestion adding to the delays in importing of materials
 Big burden of high interest rates on working capital while competing with
international suppliers who have the facility of every low interest rates
 Shortage of manpower due to VRS several times
 Replacement/updating of machinery
THE BHEL-BHPV MERGER

The company was helping in building many projects of national importance in the core sector. Its
revival and continued existence will be helpful in controlling the cost of the end users’ projects
on the one hand and ensure the welfare of those directly involved on the other hand.
BHEL has established its tool prints in all six continents of the world spanning two countries and
its technical competence has earned worldwide acclaim.
As the first order step towards the revival of BHPV, BHEL has placed the first commercial order
on BHPV following takeover of the company in May 2008.
As setting up another manufacturing plant needs massive green field investments entry like
BHPV makes better achieved by enhancing capacity with brown field investments.
BHPV has been developed as a dedicated centre for industrial boilers. With the cost structure of
BHPV is similar to BHEL costs came down due to factors like increased volume and better
financial capability leading to lower working capital borrowing costs with a capital of Rs. 236
crores spread over 3 years.
Due to the impressive performance of the company during the years 2010-11, 2011-12, 2012-
2013, the holding company has proposed merger of BHPV as its 17th manufacturing unit and the
same was cleared by GOI.
41
AN OVERVIEW OF TOP MANAGEMENT
At corporate level the company’s affairs are managed by the board of consisting of full time
Managing Director and CMD, BHEL as the chairman of the board. In addition, one ex-officio
director from the DHI (Administrative ministry) and two functional directors also constitute the
board.
SYNERGY OF BUSINESS MERGER
The merger of BHEL-HPVP has the following advantages
 Managerial and marketing support from BHEL
 Diversification into high pressure power boilers
 Technological support for new products
 Financial support for upgradation of manufacturing facilities, Capex and working
financial support for upgradation of manufacturing facilities, Capex and working capital
requirement
 Ensured flow of new orders
 Synergy between the two organizations in view of similarity of products /technology
 Business advantage due to excellent brand image of BHEL
42
43
44
Chapter 3: The Present Study /Methodology
Introduction:
The present study is about how the MSME payments are being managed by BHEL through the
TReDS platform, and whether these TReDS platforms are useful to the MSME vendors.
Delay in getting payments is one of the perennial problems faced by MSMEs. To address this
issue, the Reserve Bank introduced the Trade Receivables Discounting System (TReDS) in
2014.
TReDS is an electronic platform where receivables of MSMEs drawn against buyers (large
corporates, PSUs, Government departments) are financed through multiple financiers at
competitive rates. This is done through an auction-based mechanism.
To widen the scope of TReDS and to incentivize more players to be part of this platform,
banks’ exposure through this platform were brought under priority sector lending in 2016.
Presently, three entities [viz., Receivables Exchange of India Ltd. (RXIL), m1exchange, and
invoice Mart). TReDS, is licensed by the Reserve Bank, have been operating the platform for
more than two years.
i Need/significance of the study

This report is to understand how BHEL manages the payments due to MSMEs and
utilizes RXIL platform. This study will highlight the efficiency and effectiveness of
TReDS platforms and how the payments at Bhel are managed to MSME vendors. As it is
very essential for the MSME vendors as they often face liquidity issues. Small
companies in India have limited existing capital or a significant volume of valuable
assets. Hence, access to finance remains challenging for MSMEs. These financial issues
make raising immediate funds through a business loan problematic.
Without funds, they either must reduce their expenses or shut down amid tight
competition. If an MSME company does not have enough profits or positive cash flow,
it may suffer because of financial issues and lower liquidity.
45
ii Objectives of the study:
The main objective of this study is to evaluate the effectiveness of TReDS platforms in
facilitating timely payment to MSMEs.
1. Analyzing the current payment process for MSMEs at BHEL.

2. Assessing whether the MSMEs are aware of this TReDS platform and whether it
is beneficial to them.
3. Assessing the impact of TReDS on the payment cycle and the liquidity position
of specific MSMEs.
4. The challenges faced by the MSMEs in receiving the payments through the
different platforms.
5. To evaluate how frequently the TReDS platform is being used and satisfaction
levels with the payment process.
6. To provide any recommendations for the improvement of TReDS platform based
on the survey findings and analysis.
iii Research design:

This research is a combination of both quantitative and qualitative methods.
The research is performed to analyze the MSME payment processes through TReDS
platform at BHEL.
QUALITATIVE ANALYSIS: The analysis is made from open-ended questionaries to analyze

the efficiency and issues faced by MSMEs by using the TReDS platform.
QUANTITATIVE ANALYSIS: The secondary data is obtained from the payment accounts of
BHEL(HPVP). This data is useful for analyzing the last 4 years of payments through TReDS
platform and to identify the trends and patterns along with certain closed ended questions in the
survey which is a primary source of data.
46
Chapter 4: Analysis of Study and interpretation
1) DATA RELATED TO PERCENTAGE OF MSME TRANSACTIONS MADE

THROUGH TReDS PLATFORM AT BHEL(HPVP) FOR EACH YEAR
PERCENTAGE OF MSME
TRANSACTIONS THROUGH TReDS AT
BHEL(HPVP)
11%
47% 23-24
31% 22-23
21-22
11% 20-21
DATA INTERPRETATION: The following Pie chart shows the percentage wise number of
MSMEs transactions made through TReDS platform at BHEL(HPVP).
YEARS:
2020-21:
 This year accounts for 11% of the transactions made through TReDS platform and is
represented by blue color.
2021-22:
 This year the transactions constitute 31% of the total. This indicates a significant increase
in TReDS activity compared to the previous years and represented by green color.
2022-23:
47
 The transactions this year account for 11% of the total and there is a decline in activity
when compared with 21-22 years.
2023-24: This year, the number of TReDS payments account for 47% of the total. This shows an
increase in TReDS payments compared to all years. It shows a greater number of vendors are
using the platform for transactions.
OBSERVATIONS:
In 2023-24, the number of TReDS payments at BHEL peaked, indicating high adoption of
platform by the vendors. Payments dropped significantly in 2022-23 but recovered in 2023-24.
Overall, the number of transactions through TReDS show a fluctuating pattern at BHEL(HPVP).
2) NUMBER OF REGISTERED VENDORS WITH BHEL(HPVP)
REGISTERED VENDORS
5606
6000
4582
5000
4000
3000 Total
2000 1024
1000
0
TOTAL NON MSME MSME
REGISTERED
VENDORS
Data interpretation: The following chart shows the number of registered vendors with
BHEL(HPVP).
 TOTAL REGISTERED VENDORS: 5606
 TOTAL MSMEs REGISTERED: 1024
 TOTAL NON MSMEs REGISTERED: 4582
48
3) SECTOR WISE REGISTERED MSMEs WITH BHEL
REGISTERED MSME WITH BHEL
700
600
500
400
640
300
200 337
100
47
0
MICRO SMALL MEDIUM
DATA INTERPRETATION: The following chart explains about the registered MSMEs with
BHEL(HPVP).
MICRO ENTERPRISES: There are 337 micro enterprises registered with BHEL(HPVP). They
are small in terms of investment and turnover when compared to other enterprises.
SMALL ENTERPRISES: There are 640 small enterprises registered with BHEL(HPVP). The
majority of the registered MSMEs fall under this category.
MEDIUM ENTERPRISES: There are only 47 registered medium enterprises with BHEL, the
lowest among the three enterprises.
49
4) YEAR WISE TOTAL PAYMENTS MADE THROUGH TReDS PLATFORM AT
BHEL(HPVP)
YEAR WISE TOTAL PAYMENTS MADE

THROUGH TReDS
[VALUE]
44,353,233 Total
₹78,77,416
₹31,04,575
20-21 21-22 22-23 23-24
DATA INTERPRETATION: This chart shows the payments made through TReDS platform at
BHEL(HPVP).
2020-21:
 The total payment through TReDS this year is ₹3,104,574.
2021-22:
 This year indicates significant growth or high transaction volume of ₹4,43,53,233. This
represents the peak year in terms of payments through TReDS.
2022-23:
 There was a decline in total payments, dropping to ₹7,877,416. This indicates a
significant reduction compared to the previous year.
2023-24:
 Payments increased again to ₹55,000,579 which is highest overall of the year. While this
is a significant increase in payment made through TReDS.
50
5) YEAR WISE NUMBER OF TRANSACTIONS MADE THROUGH TReDS FOR
DIFFERENT ENTERPRISES
NUMBER OF TREDS TRANSACTIONS AT

BHEL(HPVP)
micro small medium
20-21 0 5 0
21-22 2 12 0
22-23 0 4 1
23-24 16 1 4
DATA INTERPRETATION: This graph shows the total number of transactions made by
BHEL(HPVP) through TReDS platform for the last 4 years.
 2020-21: This year transactions occur with small enterprises only, which are a total of 5
in number.
 2021-22: This year the highest number of transactions are with small enterprises which
are 12 in number and only 2 transactions are made with micro enterprises.
 2022-23: This year a greater number of transactions are made with small enterprises and
one transaction with medium enterprises.
 2023-24: This year constitutes overall highest number of transactions, 16 with micro,4
with medium and 1 with small enterprises.
51
6) EACH YAER SECTOR WISE PAYMENTS MADE THROUGH TReDS
PLATFORM AT BHEL(HPVP)
SECTOR WISE PAYMENTS FOR

EACH YEAR
60000000
₹2,44,073.56
50000000
40000000 small
₹2,21,18,866.61 ₹4,16,00,203.79
30000000 micro
₹77,61,915.79 medium
20000000₹31,04,574.76
₹2,22,34,366.61
10000000 ₹1,31,56,302.02
₹1,15,500.00
0
2020-21 2021-22 2022-23 2023-24
DATA INTERPRETATION: The following represents the sector wise payments made
by BHEL(HPVP) through TReDS platform.
Row Labels medium micro small Grand Total

₹ ₹
2020-21 3,104,574.76 3,104,574.76
₹ ₹ ₹
2021-22 22,234,366.61 22,118,866.61 44,353,233.22
₹ ₹ ₹
2022-23 115,500.00 7,761,915.79 7,877,415.79
₹ ₹ ₹ ₹
2023-24 13,156,302.02 41,600,203.79 244,073.56 55,000,579.37
52
7) TOTAL PAYMENTS MADE THROUGH TReDS PLATFORM OVER THE LAST
4 YEARS AT BHEL(HPVP) FOR MSMEs.
TOTAL PAYMENTS FOR THE MSMEs OVER THE LAST

4 YEARS
₹ 1,32,71,802 , 12%
₹ 3,32,29,431 , 30%
medium
micro
small
₹ 6,38,34,570 , 58%
DATA INTERPRETATION: This pie chart represents the total amounts paid to MSMEs
sectors through TReDS platform for over the last 4 years at BHEL(HPVP).
 MICRO ENTERPRISES: A total of ₹6,38,34,570 is made through TReDS platform,
which is highest of all and are represented by orange color.
 SMALL ENTERPRISES: A total of ₹3,32,29,431 payment is made over the last 4 years
to small enterprises and are represented by the green color.
 MEDIUM ENTERPRISES: The lowest payments are made by medium enterprises
which accounts for 12% of the total, i.e., is ₹1,32,71,802.
53
1)Which type of enterprise?
DATA INTERPRETATION: The above pie chart shows which type of MSME enterprises.
MICRO ENTERPRISES: It composes 40% of the total survey, which is highest when
compared to others.
SMALL ENTERPRISES: Almost 35% of the responses are from the small enterprises.
MEDIUM ENTERPRISES: It composes only 25% out of total responses from the survey.
54
2)Which sector does your business operate in?
DATA INTERPRETATION: The above pie chart provides information about the type of sectors
in which the business operates.
MANUFACTURING: It accounts for the largest portion of the sector, with 62.9% of the
business, and is represented by the blue segment.
SERVICES: It is represented by the red segment and accounts for almost 29% of the business.
RETAIL: Lowest of all, and it comprises of 8.6% which is represented by the orange segment.
55
3)Does your organization is aware of TReDS platform?
DATA INTERPRETATION: The following pie chart describes the awareness of TReDS
platform among the MSMEs.
YES: Represented by the blue segment and 60% of the respondents are aware of the TReDS
platform.
NO: Represented by the red segment and 40% of the respondents are not aware of the TReDS
platform.
56
4)How did you first learn about TReDS platform?
DATA INTERPRETATION: The following pie chart gives us information about how the
respondents are aware of the TReDS platform.
GOVERNMENT INITIATIVES: Most of the respondents are aware of the platform through
the government initiative and represented by the blue segment with 42.9%.
INDUSTRY ASSOCIATION: Almost 28.6% of the respondents are aware of the platform
through the industry association which is represented by the red segment.
ONLINE RESEARCH: Represented by the orange segment, 14.3% of the respondents
discovered the platform through online research.
OTHERS: Represented by the green segment, 14.3% of the respondents discovered the platform
through others.
57
5) Is your company currently using TReDS platform to make transactions for MSMEs?
DATA INTERPRETATION: The following pie chart gives information about the current
usage of TReDS platform from the respondents.
50% of the respondents are currently using the TReDS platform and the remaining 50% of the
respondents are not using it at all.
58
6)Which Platform of TReDS does your company currently using?
DATA INTERPRETATION: The following pie chart shows which platform is used most by
the respondents.
RXIL: Represented by the blue segment and almost 82.4% of the respondents are using the
RXIL platform.
M1XCHANGE: Only 11.8% of the respondents are using this platform which is represented by
the red segment.
59
7)Does TReDS platform have improved your business performance?
DATA INTERPRETATION: The following pie chart shows the results of the survey question:
Does TReDS platform help to contribute to their business performance.
YES: 94.1% of the respondents say that the platform is contributing to their business
performance and represented by the blue segment.
NO: Red segment shows that the platform is not contributing to their business.
This pie chart suggests that a strong majority of respondents believe that the TREDS platform
helps contribute to business performance.
60
8) Does TReDS platform help in reducing the risk and uncertainty of your business?
DATA INTERPRETATION: The following pie chart shows responses to a questionnaire that
whether TReDS platform is really helping the MSMEs to reduce the uncertainty and business
risk.
YES: Most of the respondents (82.4%) show that the platform is helping them to reduce the
uncertainty and business risk. It is represented by the blue segment.
MAYBE: A very few respondents (17.6%) show uncertain and choosing “maybe”. It is
represented by the yellow segment.
NO: There are no respondents who believe that the TReDS platform does not help in reducing
business risk and uncertainty.
61
9) How efficiently does your cash flow management has improved after using the
TReDS platform?
DATA INTERPRETATION: The following pie chart shows responses of MSMEs to the
questionnaire that whether using TReDS platform has really improved their cash flow in the
organization.
SIGNIFICANTLY IMPROVED: Most of the respondents believe that using TReDS platform
has significantly improved their cash flow management and accounts for 58.8% of the
respondents, which is represented by the blue segment.
SOMEWHAT IMPROVED: 35.3% of respondents show that their cash flow has improved
after using the TReDS platform. It is represented by the red segment.
NO CHANGE: A few respondents showed that there is no change in their cash flow
management, and it is represented by the yellow segment, which accounts for 5.9% of the
respondents.
62
10) Does any delays or issues have happened while using the TReDS for discounting
process?
questionnaire whether they have experienced any issues with the discounting process on TReDS
platform.
NO: Most respondents (82.4%) say that they have not experienced any issues or delays with the
TReDS platform, which is represented by the red segment.
YES: A few respondents (17.6%) say that they have experienced any issues or delays with the
TReDS platform, which is represented by the blue segment.
63
11) What type of challenges have you faced while using the TReDS platform?
challenges they faced while using the TReDS platform.
NONE: Most of the respondents show that they have not faced any challenges while using the
TReDS platform which accounts for 52.9% and is represented by the blue segment.
OTHERS: 17.6% of the respondents are facing other problems while using the TReDS platform
and is represented by the violet segment.
LACK OF SUPPORTING /TRAINING: Of the total respondents 17.6% of the respondents
are facing a lack of support while using the TReDS platform and is represented by the green
segment.
TECHNICAL ISSUES: Technical issues are faced by 5.7% of the respondents while using the
TReDS platform and are represented by the red segment.
COMPLEXITY OF PROCESSES: 5.7% of the respondents have faced this issue and are
64
12) What type of challenges does your company faced while making transactions
through TReDS platform?
DATA INTERPRETATION: The following chart shows responses of MSMEs to the

challenges they faced during the transaction process through the TReDS platform.
NO CHALLENGES: Most of the respondents (60.4%) have not faced any problems during the
transaction process.
TECHNICAL ISSUES: Almost 18.8% of the respondents have faced these issues while using
the platform.
BIDDING PROCESS, DISCOUNTING CHARGES AND NETWORK ISSUES: each
account for 6.3% of all the responses and challenges faced by the MSMEs during the transaction
process.
65
13) After using TReDS platform has your payment cycle improved?
DATA INTERPRETATION: The following pie chart shows responses of MSMEs to

questionnaire that after using of TReDS platform whether their payment cycle has improved or
not?
YES: Most of the respondents (82.4%) stated that their payment cycle has improved after the
TReDS platform and is represented by the blue segment.
MAYBE: 17.6% of the respondents which are represented by the yellow segment state that their
payment cycle has maybe improved, and this shows that they are not too clear.
66
14) How frequently do you use TReDS platform for discounting your receivables?

questionnaire, that how frequently they are using the TReDS platform.
RARELY: Most of the respondents (41.2%) are rarely using the TReDS platform and are
represented by the green segment.
QUATERLY: Almost 35.3% of the respondents are using TReDS platform quarterly and
RARELY: 23.5% of respondents are rarely using the platform and are represented by the red
segment.
67
15) What is the average discount rate you get on your receivables while using the
TReDS platform?
questionnaire that is the average discount they will receive on their invoices.
Half of the respondents (50%) receive a discount of 2 to 3% on their invoices and are represented
by the orange segment.
43% of the respondents receive a discount of 1-2% on their invoices and are represented by the
red segment.
7% of respondents receive a discount of 3-4% on their invoices and are represented by the green
segment.
68
16) What benefits does your organization gain by using the TReDS platform?

questionnaire that are, the benefits they are gained through the TReDS platform.
FASTER PAYMENT CYCLES: 47.1% of the respondent’s state that they have faster payment
cycles while using the TReDS platform and is represented by the blue segment.
REDUCED DEPENDANCE ON LOANS: Using TReDS platform has reduced their
dependency on loan, which accounts for 29.4% of the total respondents and are represented by
the yellow segment.
BETTER LIQUIDITY: 17.6% of respondents believe that they have better liquidity position
after using TReDS platform.
NOT USING TReDS: 5.9% of respondents are not aware of TReDS platform and are
represented by the violet segment.
69
17) Would you like to recommend TReDS platform to other MSMEs?

questionnaire whether they would recommend other MSMEs to adopt the TReDS platform.
All the responses show that they are willing to suggest other MSMEs adopt the TReDS platform.
70
18) How satisfied is your organization with TReDS platform?

questionnaire that how much they are satisfied with using the TReDS platform.
SATISIFED: 82.4% of the respondents show that they are satisfied with the TReDS platform
and represented by the red segment.
NEUTRAL: 11.8% of respondents are neutral to the usage of TReDS platform, i.e., they are
neither satisfied nor dissatisfied and represented by the orange segment.
VERY SATISIFIED: only 5.8% of the respondents are very satisfied with TReDS platform and
represented by the blue segment.
71
19) What type of improvement does your organization would like to see in TReDS
platform?
DATA INTERPRETATION: The following chart shows responses of MSMEs to questionnaire

the improvements they would require in the TReDS platform.
This chart shows that our respondents have not suggested any improvements to be made to the
TReDS platform.
72
CHAPTER 5: Findings, suggestions and conclusion
FINDINGS
 BHEL(HPVP) will procure the materials through the tender notification and accepts the
least quoted tender and issues the purchase order.
 It can be MSME or NON-MSME.
 It is found that most of the MSME payments are made within the due date through
normal transaction mode.
 TReDS payment for MSME vendors at BHEL(HPVP) has shown a significant fluctuation
over the analyzed 4 years.
 The TReDS payment has witnessed the highest activity during the year 2023-24
accounting for 47% of the total payments.
 One of the reasons for the lowest activity occurred during the period 2020-21 at
BHEL(HPVP) may be due to the pandemic, where the business has closed their activities.
 But there was a substantial decline in the number of payments through TReDS platform
at BHEL(HPVP) in the year 2022-23 which is lowest of all. (11%).
 In the next year 23-24, there is a tremendous recovery of payments accounting for 47% of
the total TReDS payments.
 Small enterprises constitute the majority of the registered MSMEs with BHEL(HPVP)
with 640 in number.
 Medium enterprises have the least registrations of 47 in number among the MSME
categories.
 When compared the highest transactions in terms of amount are made with micro
enterprises which is 48%, followed by small (30%) and medium enterprises (12%) in
terms of payments.
 The highest number of transactions are with small enterprises and the least is with
medium enterprises.
 Both in terms of number of transactions or with total payment, the small enterprises show
a significant record when compared to other enterprises and medium enterprises are least
likely to when compared to other enterprises.
73
 Through survey it is found that RXIL (receivables exchange of India limited) is most
widely used platform among the three platforms.
 Most micro enterprises are not aware of the TReDS platform and its benefits.
 Micro enterprises are choosing some other mode of finance to cover their working capital
because of the lack of awareness about the TReDS platform.
 While using TReDS platform a very few are faced with technical issues and problems.
 TReDS platform helped MSMEs in reaching better liquidation and less dependent on
loans.
 Factoring units are generated in RXIL by the seller depending on the liquidity situation of
the firm.
SUGGESTIONS:
 BHEL(HPVP) should encourage MSMEs to get registered with them and participate in
their tender process.
 Most of the micro enterprises are not aware of these platforms, so government should
come up with certain initiatives to encourage participation from Micro and small
businesses.
 Platform awareness on M1Xchange and Invoice Mart to potential buyers and sellers.
 BHEL(HPVP) should adopt other platforms like M1Xchange and Invoice mart, so that
most of the MSMEs who adopt these platforms can create a BUYER-SELLER link with
BHEL.
 From the report it would be suggested that the technology adoption and technical
improvements need to be implemented to the micro enterprises.
 Processing time needs to be improved and it is suggested to have a local language
assistance with the TReDS platform.
 It is suggested that if the discounting cost is borne by both the buyer and seller in case of
factoring or reverse factoring, it would help both parties to build better relations.
 Technical issues, the discounting process needs to be improved so that more transactions
may occur through the TReDS platform.
 MSMEs, mainly micro enterprises should know about the other platform for raising of
74
any complaints, schemes and policies etc. through MSME samadhaan, MSME sambandh
and Udyam sakhi portal.
CONCLUSION:
This report analyzes the BHEL(HPVP) utilization of TReDS platform for MSME
payments and overall performance for the 4 years along with survey conducted on
MSMEs.
 TReDS payment for MSME vendors at BHEL(HPVP) shows a significant
variation in the 4 years. It can be due to less creation of factoring unit by MSMEs
vendor.
 TReDS platform was initiated to overcome the working capital problem faced by
MSMEs but most micro enterprises doesn’t have an idea about this platform and
its usage.
 BHEL (HPVP) uses the RXIL platform to make payments for MSMEs and it is
widely used in BHEL.
 BHEL(HPVP) did more business with medium enterprises and small enterprises
compared to the micro enterprises without TReds platform.
 By using TReDS platform, it is identified that most of the payments and
transactions are with small and micro enterprises.
 It shows that the platform is enhancing the enterprises which need immediate
working capital.
LIMITATIONS OF THE STUDY:

 This study is limited only to BHEL(HPVP) at Visakhapatnam.
 As to the company privacy concern, the data mentioned in the project report is
limited.
 The study is only related to MSMEs payment management through TReDS platform at
BHEL, other areas are not taken into consideration.
 The study is only done for four years i.e. 2020-2024.
 The data is collected from BHEL which is approximate data and may have some minor
75
changes.
 The survey which is conducted is confined only to the MSMEs in Vishakhapatnam and
the data may not be completely true.
 The study is done by taking certain assumptions and generalizations.
76
BIBILOGRAPHY
. What is the definition of MSME | Ministry of Micro, Small & Medium Enterprises
Udyam registration|Udyog Aadhaar online|MSME Registration (eudyogaadhaar.org)
What is MSME? Definition, Benefits, Registration & Classifications of MSMEs Explained
(msmex.in)
MSME Dashboard
Home - RXIL
All about Trade Receivables Discounting System (TReDS) Online Platform (clear.in)
Udyam Registration : Zero cost, No Fee and Free Registration of MSMEs. This is official
website of Govt. of India, Ministry of MSME. No other website/portal/app is official. MSMEs
are requested to do MSME Registration here only
https://www.rxil.in/treds/#what-is-treds
https://taxguru.in/corporate-law/msme-sambandh-samadhan-technological-centres-sampark.html
Benefits of TReDS for MSME suppliers (clear.in)
MSME06032020.PDF (rbi.org.in)
Untitled-1 (msme.gov.in)
https://cleartax.in/s/section-43bh-of-income-tax-act
https://my.msme.gov.in/MyMsmeMob/MsmeProjectProfile/Dairy.htm
77

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A STUDY ON

ASSESSMENT OF MSME PAYMENT MANAGEMENT

With reference to BHARAT HEAVY ELECTRICALS LIMITED

GANDHI INSTITUTE OF TECHNOLOGY AND

S. No CONTENTS PAGE No.

6 Chapter 1: Theoretical Framework 6

7 Chapter 2: Industry and company profile 14

8 Chapter 3: The present study/Methodology 27

9 Chapter 4: Data analysis and interpretation 45

10 Chapter 5: Findings, suggestions and conclusion 73

I, PAILA PHANENDRA KUMAR, a student of Master of Business Administration (MBA)

Place: VISAKHAPATNAM P. PHANENDRA KUMAR

Dr. Rahmi Ranjan Panigrahi

WHO CAN BE GET REGISTERED UNDER MSME:

The following entities are eligible for MSME registration:

MSME (Udyam)registration process:

REGISTRATION OF EXISITING ENTERPRISES:

PERCENTAGE WISE SECTORS

PROBLEMS FACED BY THE MSME:

INITATION BY GOVERNMENT TO OVERCOME THE FINANCIAL PROBLEMS:

TRADES RECIEVABLES DISCOUNTING SYSTEM(TReDS):

S.N. Participant Definition of Participant Benefits of TReDS

Banks, Non-banking a. Financing TReDS

BENEFITS OF TReDS TO MSME:

RXIL (RECEIVABLES EXCHANGE OF INDIA LIMITED) REGISTRATION:

STEPS TO REGISTER FOR BUYERS AND FINANCERS:

STEPS FOR SELLER TO GET REGISTERED IN RXIL:

iii. Interest borne by Buyer (Reverse Factoring)- In a reverse factoring transaction,

TERMS AND CONDITIONS:

HOW MSME PAYMENTS ARE MANAGED BY BHEL

ALLOWS TENDERING AND ACCEPTS THE LOWEST

ISSUES THE PURCHASE ORDER

RXIL DIRECT DIRECT

The global EE industry consists of the following two segments:

WORLD ELECTRICITY CONSUMPTION IN TWh

Source: The International Energy Agency’s World Outlook 2011 report.

INDIAN POWER SECTOR:

INDIAN ELECTRICAL EQUIPMENT INDUSTRY

Competitors in Boilers/Combustion system

Other critical equipment

Employee welfare amenities

Collaboration and absorption of technologies

Case-to-case tie-ups, BHEL HPVP entered into include:

 BHEL is renowned for Quality and workmanship of its products.

LLOYD’S REGISTER OF INDUSTRIAL CLASS - 1

Certificate for fusion welded pressure vessels:

ASME U & U2 STAMPS on pressure vessels

AWARDS AND ACHIEVEMENTS

PLANS AND STRATEGIES

THE BHEL-BHPV MERGER

i Need/significance of the study

1. Analyzing the current payment process for MSMEs at BHEL.

iii Research design:

QUALITATIVE ANALYSIS: The analysis is made from open-ended questionaries to analyze

1) DATA RELATED TO PERCENTAGE OF MSME TRANSACTIONS MADE

2) NUMBER OF REGISTERED VENDORS WITH BHEL(HPVP)

REGISTERED MSME WITH BHEL

YEAR WISE TOTAL PAYMENTS MADE

20-21 21-22 22-23 23-24