BHEL gets government nod to acquire BHPV

Bharat Heavy Electricals (BHEL), the country’s largest manufacturer of power equipment, will initially invest Rs 275 crore for upgrading the manufacturing facilities of Vishakhapatanam-based loss making Bharat Heavy Plate & Vessels (BHPV).

According to the scheme, the central government will waive and write-off loans and interest amounting to Rs 414.95 crore of BHPV up to 31 March 2007 this year. Besides, the government will settle all outstanding liabilities of BHPV amounting to Rs 263.97 crore.

Post-acquisition, BHPV would become a subsidiary of Bhel. The restructuring scheme also envisages increasing the authorized capital of BHPV to Rs 70 crore. Bhel will subscribe Rs 34 crore as additional equity of BHPV.