Companies

BHPV's merger with BHEL gets approval

Our Bureau Visakhapatnam | Updated on August 17, 2011 Published on August 16, 2011




The process of merging Bharat Heavy Plate and Vessels (BHPV) with BHEL has been set in motion. The BHEL board has given its permission and only the procedural formalities have to be complied with, according to Mr A.S Nagaraja, the Managing Director.

He told the employees on the occasion of Independence Day that there need be no concern on the count and the wage revision issue (payment of 1997 scales) had also been taken up and it was at an advanced stage.

The BHPV, which achieved Rs 137 crore turnover in 2010-11, was aiming at Rs 325 crore during the current financial year.

“As we progress towards complete revival and turnaround of the BHPV, we are taking up the issues and finding solutions.

Last week, BHEL Trichy Executive Director visited the BHPV and clarified that BHEL is giving full boiler orders to us and not merely passing on the low-value sub-contracting work," he said.

"I am confident that we will get further boiler orders from BHEL-Trichy as well as other companies,” the company's managing director said, adding that the order book position as on August 1 was quite comfortable at Rs 415 crore.

Ageing machinery

The ageing machinery of the BHPV was another major issue and the BHEL board had sanctioned a modernisation scheme of Rs 231 crore, and “we have procured some items like forklifts, chain slings and others under the scheme”, he said.

During the current financial year, some more important machines would be added to make the plant more efficient.

Mr Nagaraja said the R-series casual employees had been absorbed into the company after a long wait and it was a matter of great satisfaction.

He promised that other issues would also be resolved in due course to pave the way for the merger of the BHPV in the BHEL.

At present, it may be noted the BHPV is only the subsidiary of BHEL.

Published on August 16, 2011
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