New Delhi: The government today approved the merger of Vishakhapatnam-based Bharat Heavy Plate & Vessels with state-run power equipment major Bharat Heavy Electricals Ltd (BHEL).
"The merger will facilitate Bharat Heavy Plat & Vessels (BHPV) to become a unit of BHEL. BHPV would be able to participate in tenders, obtain orders and attract best vendors for procuring materials/capital goods," according to an official release.
The proposal was approved by the Cabinet during its meeting held here today.
BHPV, which is into engineering and heavy fabrication, was declared a sick entity by the Board for Industrial and Financial Reconstruction (BIFR) in October 2005.
BHEL took over BHPV as its 100 per cent subsidiary in 2008.
"However, the company's performance was not upto the mark, as it remained a separate company and it could not derive full benefits of synergy with BHEL," the release said.
BHPV was set up way back in 1966.
First Published: Thursday, February 21, 2013, 21:54