The Bharat Heavy Electricals Ltd. would take over M/s Bharat Heavy Plate & Vessels Ltd. (BHPV), Vishakhapatanam as a subsidiary and initially invest Rs. 275 crore as CAPEX apart from investing Rs. 34 crore as equity in the company.
The Department of Heavy Industry, had inter alia, proposed that Government may waive/write off loans and interests to BHPV amounting to Rs. 414.95 crore and to settle all outstanding liabilities of BHPV amounting to Rs. 263.97 crore. The Government approved “in principle” the take over of BHPV by BHEL. The Union Cabinet on 26th November, 2007 approved the financial restructuring and strengthening package of BHPV with the direction that the valuation of BHPV be carried out prudently on the basis of established principles.
As a follow up to the Government decision, a study has been commissioned by SBI Caps for valuation of BHPV as an on-going concern.
MG/SR
(Release ID :35491)