NEW DELHI: The government today approved the merger of Vishakhapatnam-based Bharat Heavy Plate & Vessels with state-run power equipment major Bharat Heavy Electricals Ltd (BHEL).
"The merger will facilitate Bharat Heavy Plat & Vessels (BHPV) to become a unit of BHEL. BHPV would be able to participate in tenders, obtain orders and attract best vendors for procuring materials/capital goods," according to an official release.
The proposal was approved by the Cabinet during its meeting held here today.
BHPV, which is into engineering and heavy fabrication, was declared a sick entity by the Board for Industrial and Financial Reconstruction (BIFR) in October 2005.
BHEL BSE -0.10 % took over BHPV as its 100 per cent subsidiary in 2008.
"However, the company's performance was not upto the mark, as it remained a separate company and it could not derive full benefits of synergy with BHEL," the release said.
BHPV was set up way back in 1966.
