BHEL to see one-time Rs 870 cr expense with BHPV amalgamation

Bharat Heavy Electricals is estimated to see a one-time expenditure of about Rs 870 crore related to the proposed amalgamation of Bharat Heavy Plate & Vessels with itself. Besides, there would be annual recurring expenses to the tune of Rs 75 crore with regard to employee salaries. Bharat Heavy Plate & Vessels (BHPV) became a 100 per cent subsidiary of Bharat Heavy Electricals in 2008. 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. The proposed amalgamation of Visakhapatnam-based Bharat Heavy Plate & Vessels Ltd with the company is projected to result in a one-time expenditure of Rs 869.92 crore, according to a notice sent by BHELBSE -1.24 % to its shareholders seeking approval for the scheme. The figure includes an amount of Rs 224 crore towards liabilities arising out of "legal cases and excise duty/ service tax" and outstanding loans to BHEL worth over Rs 234 crore. Besides, BHEL would see a recurring annual expenditure of Rs 75 crore on account of "employee payments for 2007 wage revision". ref: http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/engineering/bhel-to-see-one-time-rs-870-cr-expense-with-bhpv-amalgamation/articleshow/20557435.cms