BHEL, BHPV merger on cards, says Minister

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Visakhapatnam, Feb 13 (UNI) Union Minister of State for Heavy Industries and Public Enterprises Kanti Singh today said it was only a matter of time for Bharat Heavy Plates and Vessels (BHPV) to merge with Bharat Heavy Electricals Limited (BHEL).

Addressing the press after visiting BHPV, she said the Indian Credit Rating Agency (ICRA) would submit the valuation report by February 15 after which the BHEL will study the same before taking over BHPV.

The Central and Andhra Pradesh Governments are for revival of sick industries and seriously considering BHPV's revival plans, she said.

Though given an in-principle approval, several concessions have been offered by both Union and State Governments for the smooth transfer of BHPV.

The company had achieved its best performance in the last five years, reducing net loss from Rs 71.38 crore in 2005-06 to Rs 34.70 crore in 2006-07 contributing Rs 28.33 crore to the exchequer, she said.

The R&D Unit of the BHPV had bagged a Rs 22-crore order from Hindustan Aeronautics Limited (HAL) for developing onboard oxygen system for Tejas, the light combat aircraft. The present order book stood at Rs 240 crore, she said.

UNI BSR GM 1638

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