The Hindu Business Line : Decks cleared for BHPV takeover

Concessions include transfer of title of land measuring 393.86 acres as gift title deed to BHPV, waiver of sales tax arrears of Rs 42.16 crore and waiver of dues towards water tax.

Our Bureau

Hyderabad April 11 The Government of Andhra Pradesh has cleared the decks for the takeover of Bharat Heavy Plates and Vessels Ltd (BHPV), Visakhapatnam, by Bharat Heavy Electricals Ltd (BHEL).

In response to a request from the Secretary, Department of Heavy Industries, New Delhi, the State Cabinet has approved the transfer of 393.86 acres of land in Visakhapatnam to BHPV as a gift deed to be transferred subsequently to BHEL, Mr Shabbir Ali, Minister for Information, told newspersons here on Wednesday.

"The Council of Ministers in its meeting today approved all the concessions requested by the Department of heavy Industry as part of the revival package for BHPV. The concessions approved are valued at over Rs 450 crore including the land value and waiver of various taxes," the Minister said.

CONCESSIONS

The approved concessions include, among others, the transfer of title of land measuring 393.86 acres as gift title deed to BHPV, waiver of sales tax arrears of Rs 42.16 crore and waiver of dues towards water tax and vacant land tax of Rs 3.96 crore.

The decision would give immediate relief to over 1,700 employees of BHPV. All permanent employees of BHPV are proposed to be continued, while a few completely unqualified persons would be redeployed or offered voluntary retirement, Mr Ali said.

"However, we have asked for a complete rehabilitation package which will be presented for the consideration of the Board of Industrial and Financial Reconstruction (BIFR) and the employee unions," he added.

Established in 1966 as a public sector undertaking for the manufacture of capital equipment for core industries, BHPV had run into bad weather from 2002-03 and had been referred to the BIFR due to the recurring losses in 2004-05.

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