Union Cabinet approves merger of BHPVL with BHEL
The Union Cabinet has given nod to merger of Bharat Heavy Plate & Vessels Ltd. (BHPVL) Vishakhapatnam with Bharat Heavy Electricals Limited (BHEL), New Delhi.
Why this amalgamation?
BHPVL, established in 1966, is an engineering / heavy fabrication company in Vishakhapatnam, Andhra Pradesh. The company faced severe losses and was pronounced sick by the Board for Industrial and Financial Reconstruction (BIFR) in October, 2005. In 2008, it was taken over by BHEL as its 100% subsidiary. However, the company’s show was not upto the mark, as it remained a separate company and it could not derive full benefits of synergy with BHEL.
- The merger will aid BHPV to become a unit of BHEL.
- BHPV would be able to take part in tenders, obtain orders and attract best vendors for procuring materials / capital goods.
Categories: Business & Economy Current Affairs 2017