VISAKHAPATNAM : A proposal to merge Bharat Heavy Plate and Vessels (BHPV) with Engineers India Limited (EIL) has come up for discussion at a meeting of the Board for Restructuring of Public Sector Enterprises (BRPSE). This was the first sitting held by BRPSE in New Delhi on Saturday to study the package suggested by Bilimoria Consultancy to put BHPV back on the track. The pros and cons of merging BHPV with another public sector EIL was discussed for sometime.

Sources told The Hindu that another three or four rounds of sittings may be held by the board to give finishing touches to the revival package for BHPV -- which is in the red for past few years. BHPV Managing Director and General Manager (finance) represented the management at the meeting. Employees' unions also favoured the move as merger with EIL -- which has expertise in taking up projects for oil companies -- will place it in a position to get more global orders if it gets workshop in the form of BHPV for construction of heavy engineering equipment.

During the recent visit of Prime Minister Manmohan Singh to the city, the Save BHPV Front submitted a representation demanding merger with EIL and hasten the process for revival.

The revival package by Bilimoria Consultancy envisaged one-time working capital grant after waiver of cumulative losses to the tune of Rs.400 crores, Government dues of Rs.198 crores and bank loan of Rs.145 crores.

``Owing to various liabilities in the form of loans from the Government and banks, we are being forced to pay Rs.60 crores a year towards interest a year at the rate of heavy interest,'' Save BHPV Front general secretary S. Jyoteeswara Rao said. arious issues with regard to revival are likely to come up for discussion here on June 1 when M.K. Singh, Secretary in the Ministry of Heavy Industries, call on District Collector A.K. Singhal.

Earlier, a proposal to merge BHPV with Bharat Heavy Electrical Limited (BHEL) was rejected during the regime of the National Democratic Alliance. The BHEL board also did not show interest to absorb the liabilities of BHPV at that time.

The BHPV unions are opposing auction of 150 acres under its possession to raise funds for the revival. Instead, the authorities could allow the employees to buy 1,192 quarters at market rate without dismantling them and sell only 75 to 80 acres `actual' surplus land, Mr. Jyoteeswara Rao said.

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