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Posted on Feb 22, 10:39AM | IBNS
New Delhi, Feb 21 : The Union Cabinet Thursday gave its approval for merger of Bharat Heavy Plate & Vessels Ltd. (BHPV) Vishakhapatnam with Bharat Heavy Electricals Limited (BHEL), New Delhi.
Earlier, BHPV an engineering / heavy fabrication company established in 1966 at Vishakapatnam in Andhra Pradesh, incurred heavy losses and was declared sick by the Board for Industrial and Financial Reconstruction (BIFR) in October, 2005.
BHEL took over BHPV as its 100 percent subsidiary in 2008.
However, the company's performance was not up to the mark, as it remained a separate company and it could not derive the full benefits of synergy with BHEL.
The merger will now 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 / capital goods.