Rs 750 cr stuck in Qatar projects due to delays in payments: Voltas CEO
Voltas has already approached the Indian government for help on the issue and also approached the Embassy in Qatar.
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NEW DELHI: Tata Group firm Voltas is facing a major headwind in Qatar as around Rs 750 crore has been stuck due to delays in the realisation of overdue receivables and execution timelines, said its MD and CEO Pradeep Bakshi.
In some projects, bank guarantees were “unethically” encashed by some contractors, which was an “uncalled” action to make quick money, derailing the international project business of Tata Group firm in the December quarter, he added.
“Unprecedented things are happening in that area, especially in Qatar, wherein, unfortunately, our dues are not being paid to us timely, and inordinate delays are happening. We have completed the project and handed it over, and despite that, payments are not made,” Bakshi said.
Voltas has already approached the Indian government for help on the issue and also approached the Embassy in Qatar.
MEP (mechanical, electrical, and plumbing) contractor Voltas has completed the projects in Qatar and handed them over as per the contract. However, its bills are not getting certified and paid.
“There has to be some basic ethics when you do business with your partners... Unfortunately, our payments are not coming.
“The total gross outstanding is close to Rs 750 crore. There is an additional exposure of 375 core in bank guarantees,” Bakshi said.
Most of the projects are getting over in the last six to seven quarters, and Voltas is incurring huge losses because of this, which is uncalled for, he noted.
