Bhel completes acquisition of Bharat Heavy Plate & Vessels

NEW DELHI: Navratna company Bharat Heavy Electricals (Bhel) has formally taken over Bharat Heavy Plate & Vessels (BHPV). This became a zero liability takeover for Bhel after the central government and the Andhra Pradesh government agreed to share all the financial liabilities of the ailing public sector company.

The authority letter to this effect was handed over by Department of Heavy Industry secretary Satyanarayana Dash to Bhel chairman & managing director K Ravi Kumar here on Saturday. Meanwhile, Bhel has signed a memorandum of understanding (MoU) with the Andhra Pradesh generation company (APGenco) for setting up the country���s largest integrated coal gasification combined cycle power plant at Vijayawada.

���As per the strategic plan 2012 adopted by the company, we envisage power sector to contribute 70% to the company���s turnover by 2011-12 with 30% contribution from industry related businesses taking Bhel���s sales turnover to Rs 45,000 crore by 2012,��� Mr Kumar said. As setting up another plant would need massive investments and long gestation time, supporting an existing entity like BHPV makes better business sense, Mr Kumar said.