The Union Cabinet today gave its approval for merger of Bharat Heavy Plate and Vessels Ltd. (BHPV) Vishakhapatnam with Bharat Heavy Electricals Limited (BHEL), New Delhi.
A Cabinet statement said that the merger will facilitate BHPV to become a unit of BHEL. BHPV would be able to participate in tenders, obtain orders and attract best vendors for procuring materials and capital goods.
Bharat Heavy Plate and Vessels Ltd. (BHPV) is an engineering and heavy fabrication company established in 1966 in Vishakhapatnam, Andhra Pradesh.
Due to various factors, there were heavy losses and the company was declared sick by the Board for Industrial and Financial Reconstruction (BIFR) in October, 2005.
Bharat Heavy Electricals Limited (BHEL) took over BHPV as its 100 percent subsidiary in 2008.
However, the company's performance was not upto the mark, as it remained a separate company and it could not derive full benefits of synergy with BHEL. (ANI)