Financial Daily from THE HINDU group of publications
Saturday, Mar 19, 2005
Financial Daily from THE HINDU group of publications Saturday, Mar 19, 2005 |
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Corporate
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Sick Units AP CM writes to Centre as BHPV revival hangs fire Our Bureau
Hyderabad , March 18 THE Chief Minister, Dr Y.S. Rajasekhara Reddy, has urged the Union Minister for Heavy Industries & Public Enterprise, Mr Santosh Mohan Deo, to take immediate steps for the revival of the Bharat Heavy Plate and Vessels Ltd in Visakhapatnam. The State Government has been processing the issues mentioned by the Union Minister in his letter in October last, regarding dues of sales tax, water etc. he said. In a letter to the Minister, the Chief Minister said the BHPV was recently referred to the Board for Industrial and Financial Reconstruction, and hence the Centre might explore various options for its revival. The BHPV has been a pioneer in executing orders for manufacturing of industrial equipment and the several workers and staff are dependent on it. Our Vizag Bureau adds: The promised revival package for BHPV is likely to take a long time, as even the preliminary work has not been completed and at present there is not even a regular Managing Director for the unit. The UPA Government, the ruling Congress party in the State in particular, promised in its election manifesto the revival of the sick public sector units, especially BHPV and Hindustan Shipyard Ltd. Both the mainstream left parties are keen on the revival of BHPV. Mr Ch. Narsinga Rao, the member of the State Secretariat of the CPM and a senior union leader, complained that the unit did not even have a full-fledged Managing Director at this critical juncture. "There is no attempt by the other public sector units, especially the oil companies, to place orders with the BHPV. The PSU oil majors patronise the private sector heavy engineering companies, even though BHPV has the expertise and infrastructure to execute the orders. It lacks working capital and some orders. The Government should work towards that end and expedite the formulation of revival package," he said. In a letter sent to the Union Minister for Petroleum and Natural GasMr Mani Shankar Aiyar, Mr Santhosh Mohan Deb had urged the former to instruct the PSU oil majors to place orders with the BHPV. Mr Deb had suggested that of the Rs 2,800-crore work orders for the Visakha and Mumbai refineries of the HPCL, at least orders worth Rs 400 crore relating to heat exchangers and green fuel projects could be placed with the BHPV. But, there seems to be no response, allege the unions. According to Mr S. Jyotiswara Rao, secretary of the CITU-affiliated BHPV union, the latest revival plan had been entrusted to S.B. Billimoria and Company by the previous NDA Government, but not much headway could be made as the dues to the company had not been cleared. The company had been engaged four years ago to formulate the package. He said the work had just begun and it might take quite some time. The unions and workers are eagerly awaiting the promised package.
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