The Hindu : Front Page : State doles out sops for BHPV merger

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Sunday, Jun 03, 2007
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State doles out sops for BHPV merger

Santosh Patnaik

VISAKHAPATNAM: The Andhra Pradesh Government has doled out several sops to facilitate the merger of Bharat Heavy Plate and Vessels with the Bharat Heavy Electricals Limited.

After Cabinet approval, the Industries and Commerce Department issued GO Ms. No. 96 recently clearing the way for the merger move to ensure its revival. The BHPV is a subsidiary of the Bharat Yantra Nigam Limited in the public sector. The BHPV is referred to the Board of Industrial Finance and Reconstruction after its liabilities crossed more than its capital base.

After careful consideration of the request made by the Secretary, Ministry of Heavy Industry, the State Government cleared several concessions and relief for smooth takeover by the BHEL.

The sops included waiver of sales tax arrears of Rs. 42.16 crores, waiver of NALA tax of Rs. 43 lakhs and dues towards water, property and vacant land tax of Rs. 3.96 crores.

Title deed transfer

As per the GO, title deed for 386.73 acres of land now under possession of the BHPV would be given in the form of a gift deed and the registration and stamp duties would be waived. This was in reversal of the earlier proposal made at the behest of the Ministry of Heavy Industry to auction `surplus' lands of the BHPV to pool up funds for revival of the sick unit. However, it was a different story that the proposal was dropped following vehement protests to the idea by trade unions and political leaders of the region.

The BHPV was set up in 1966 under the administrative control of the Ministry of Heavy Industry for manufacture of capital equipment for the core industries such as fertilizer, petroleum, refineries, petrochemicals, steel, power and chemicals. The State Government handed over the land in question at Tungalam, Akkireddipalem, Mindi and China Gantyada villages for the setting up of the factory and township in 1965.

The Union Cabinet clearance is likely anytime on the merger of BHPV with BHEL after approval by the Board for Industrial and Financial Reconstruction.

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