BHEL acquiring Bharat Heavy Plate

New Delhi: State-owned Bharat Heavy Electricals Ltd (BHEL) would take over Bharat Heavy Plate & Vessels Ltd (BHPV), Visakhapatnam, as a subsidiary and pump-in Rs 275 crore as capital expenditure into the company. Besides this, BHEL would also invest Rs 34 crore as equity in the company.

The Department of Heavy Industry had proposed that Government may waive or write-off loans and interests to BHPV amounting to Rs 414.95 crore and settle all outstanding liabilities of BHPV amounting to Rs 263.97 crore. The Government approved `in principle' the take over of BHPV by BHEL. The Cabinet, last month, approved the financial restructuring and strengthening package of BHPV, with the direction that the valuation of BHPV be carried out prudently on the basis of established principles.