The Indian Cabinet on Thursday gave its approval for merger of Bharat Heavy Plate and Vessels Ltd. (BHPV), Vishakhapatnam, with Bharat Heavy Electricals Ltd. (BHEL), New Delhi, reports said.
The government said that the merger would facilitate BHPV to become a unit of BHEL. BHPV would be able to participate in tenders, obtain orders and attract best vendors for procuring materials and capital goods.
BHPV is an engineering and heavy fabrication company established in 1966 in Vishakhapatnam in Andhra Pradesh. In October 2005, the company was declared sick by the Board for Industrial and Financial Reconstruction (BIFR) due to heavy losses and various factors
BHEL took over BHPV as its 100 percent subsidiary in 2008.
However, the company's performance was not encouraging, as it remained a separate company and it could not derive full benefits of synergy with BHEL.
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