BHEL to take over Bharat Heavy Plate

State-owned Bharat Heavy Electricals Ltd (BHEL) will acquire Bharat Heavy Plate & Vessels Ltd (BHPV), Visakhapatnam, as a subsidiary and invest Rs 275 crore as capital expenditure into the company. Besides this, BHEL will also invest Rs 34 crore as equity in the company. The Department of Heavy Industry had proposed that Government likely to waive or write-off loans and interests to BHPV amounting to Rs 414.95 crore and settle all outstanding liabilities of BHPV amounting to Rs 263.97 crore. The Government cleared in principle the take over of BHPV by BHEL. The Cabinet, last month, permitted the financial restructuring and strengthening package of BHPV, with the direction that the valuation of BHPV to be carried out prudently on the basis of established principles.