Date:16/12/2007 URL: http://www.thehindu.com/2007/12/16/stories/2007121655860800.htm

Andhra Pradesh

Uncertainty dogs BHPV revival plan

Santosh Patnaik

VISAKHAPATNAM: The Ministry of Heavy Industries has decided to conduct valuation of Bharat Heavy Plate and Vessels (BHPV) by SBI Cap through a single tender nomination raising fears that it will further delay the revival.

Sources told The Hindu that the proposal was cleared at a high-level meeting held in New Delhi on Monday.

The order will be issued shortly and SBI Cap will be given three weeks’ time to complete the task.

The valuation cost of around Rs.50 lakhs will have to be borne by BHPV. Sources said Bharat Heavy Electricals Limited (BHEL) has forwarded a ‘huge checklist’ for valuation. “This is ridiculous when no such valuation was done when Bharat Yantra Nigam Limited made BHPV a holding company in 1987,” an official pointed out.

The revival of BHPV by making it a subsidiary of BHEL hit a roadblock with a lightning speed after the Union Cabinet cleared the takeover on November 26.

The website of Press Information Bureau displayed a press release in which it was stated that the decision would help in financial restructuring and strengthening of BHPV through takeover by BHEL. It also gave details of the package like waiver of loans and interest by Government of India totalling Rs.414.95 crores up to March 31, 2007, settling of outstanding liabilities of BHPV amounting to Rs.263.97 crores, infusion of Rs.275 crores by BHEL in upgrading BHPV facilities and increasing authorised capital of BHPV to Rs.70 crores with Rs.34 crores by BHEL as equity. Later, the note was withdrawn and the Cabinet Secretariat stated “…the valuation of BHPV is carried out prudently on the basis of established principles and if the takeover is not found feasible, the matter be brought back before the Cabinet.”