GE Grid Solutions has extended the termination date of issuing new contracts for global engineering services to GE T&D India, by one month. The new deadline is July 31, 2021.
GE T&D India, in a recent stock exchange filing, said that the company’s management would continue to explore options to minimize the impact of this development on the company.
The story so far:
- On April 30, 2021, GE T&D India announced that it was formally notified by GE Grid Solutions that effective June 30, 2021, no new contracts/purchase orders will be issued to GE T&D India Ltd in relation to short-term, non-exclusive contracts/purchase orders for global engineering services with other companies in the GE Grid Solutions division, outside India. Existing contracts/purchase orders would lapse at their expiry date or would be terminated by notice.
- This move directly affected Global Engineering Operations Division (GEOD), a division within GE T&D India, which carried out such services.
- GE T&D India said that it was exploring the possibility of redeploying the affected employees. GEOD has 190 employees and assets worth Rs.10 crore, which are now potentially redundant. GEOD has been independently valued at Rs.87 crore by Ernst & Young Merchant Banking Services LLP.
- In January 2021, GE T&D India proposed to sell off GEOD to GE India Industrial Pvt Ltd (GIIPL). This proposal, though approved by the board of GE T&D India Ltd, did not receive majority consent by minority shareholders, and hence could not be pursued.
Featured photograph (source: GE) is for illustration only
