Andhra Pradesh - Visakhapatnam   

Suspense over future of BHPV continues

Santosh Patnaik

INDUSTRYDOSSIER Employees oppose move to sell `surplus' lands of the company

VISAKHAPATNAM: With the board of directors of the Bharat Heavy Plate and Vessels Limited (BHPV) keeping its decision a closely-guarded secret, suspense over the company's future continues.

S.B. Billimoria and Company's detailed report on the revival package for the BHPV was tabled at the board meeting held last month.

The consultant has recommended Rs.500 crore plus to put BHPV -- a subsidiary of the Centre-owned Bharat Yantra Nigam Limited -- back on the right track.

Another issue that is agitating the BHPV employees is the serious effort made by the top officials of Ministry of Heavy Industries to sell `surplus' lands of the company to raise part of the funds required for its revival.

Ironically, a top delegation from the Ministry also met the Chief Secretary, Mohan Kanda, in Hyderabad a few months ago after the Union Secretary for Heavy Industries, Priyardarshi Thakur's controversial letter became public.

In the letter, he had stated that revival would entail `huge financial sacrifices' on the part of the Centre. Hence, he wanted the State Government to issue a gift deed for 370.73 acres now under possession of the BHPV and later allow the sale of part of it to raise funds for revival.

Once the board gives its nod, the newly-carved Board of Reconstruction of Public Sector Enterprises has to clear it.

Two-phase plan

Earlier, Billimoria had mooted a plan in a time-bound manner involving Rs.385 crores in the form of grant and equity from the Government and waiver of interest amounting to Rs.172 crores.

Though it was approved in 2001 itself, the proposal was kept on hold due to the decision to explore joint venture/disinvestment.

With the change in guard at the Centre after the installation of the United Progressive Alliance Government, joint venture/disinvestment plan was dropped, albeit for the time being.

``It is no big deal. If the Centre implements the DO letter sent on November 4, 2004, by Union Minister for Heavy Industries, Santosh Mohan Dev, to the Petroleum Minister, Mani Shankar Iyer, on giving orders from oil majors to BHPV, the public sector company can earn profits,'' says the honorary president of CITU-affiliated BHPV Employees Union, Ch. Narsinga Rao.

To come out of the crisis situation, Bharat Heavy Plates and Vessels immediately needs a working capital grant to put an end to liquidity crunch and some big orders from oil majors and Space and Defence research organisations.

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