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Cabinet to take up the proposal of merging loss making BHPV with BHEL

20 Feb 2013 Evaluate

The central Cabinet is likely to discuss the proposal of merging Bharat Heavy Plate Vessels (BHPV) with parent company Bharat Heavy Electricals (BHEL), in its meeting scheduled to be held on February 20, 2013. The BHPV-BHEL merger has long been hanging since Prime Minister Manmohan Singh approved it in January 2008.  Though, PM approved the merger, the former was made only a subsidiary of the company in May, 2008. Meanwhile, the merger received company’s board nod in 2010.

The long awaited merger may enable BHPV’s employees to get 60% of 1997 wage revision arrears once the company's losses are absorbed up to 50%. BHPV’s employees have been demanding implementation of 1997 and 2007 wage revisions and payment of arrears with retrospective effect.

 With no direct orders to strengthen its financial position, BHPV is now working or processing the orders of BHEL-Trichy and Hyderabad which is affecting the rate contract vendors and around 25 ancillary units of the BHPV.

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