The Hindu : National : Cabinet nod for revival of sick unit in Vizag

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Tuesday, Nov 27, 2007
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Cabinet nod for revival of sick unit in Vizag

Special Correspondent

NEW DELHI: The Union Cabinet on Monday approved a plan to revive the Vishakapatnam-based Bharat Heavy Plate and Vessels Limited (BHPVL). The revival plan includes taking over of the sick PSU by Bharat Heavy Electricals Limited as its subsidiary.

Announcing the decision, the Union Minister and Cabinet spokesperson, Priyaranjan Dasmunsi, said the BHEL would initially invest Rs. 275 crore for upgrading it.

The authorised capital of BHPVL would also be increased to Rs. 70 crore, of which Rs. 34 crore would be subscribed by BHEL. In addition, the Centre would write off loans and interests amounting to Rs. 415 crore and settle outstanding liabilities for Rs. 264 crore.

The Cabinet also cleared a proposal for the Kolkata-based Hindustan Paper Corporation to form a subsidiary for setting up a new paper mill at Jagdishpur district in Sultanpur, U.P., at an estimated cost of Rs. 2,742 crore.

The Cabinet also gave its nod for introduction of a new Bill to amend the University Grants Commission Act in the place of the Bill pending in Rajya Sabha since 1995 with a view to accommodating the various recommendations for improvements.

The Cabinet also gave its clearance for the constitution of a national disaster response fund under the administrative control of the Ministry of Home Affairs. An amount of Rs.100 crore would be provided in the fund. The National Calamity Contingency Fund would be merged with the new fund with effect from April 1, 2010.

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