Bhel to invest Rs 236 cr in subsidiary

An authority letter to this effect was handed over by Satyanarayana Dash, secretary, department of heavy industries, to K Ravi Kumar, chairman and managing director of Bhel, in the presence of Santosh Mohan Dev, minister, heavy industries and public enterprises, Union finance minister P Chidambaram, Andhra chief minster YS Rajasekhara Reddy and urban development minister S Jaipal Reddy.

Ravi Kumar said BHPV could be developed as a dedicated centre for industrial boilers, ensuring better delivery. Though the present cost structure of BHPV is similar to Bhel, costs were expected to come down due to factors like increased volumes, better financial capability leading to lower working capital borrowing costs.

Initially, Bhel will invest Rs 236 crore over the next three years, in addition to induction of experienced manpower and required technology. BHPV's turnover is expected to cross Rs 1,000 crore in five years, he added.

For protecting the interest of employees working in BHPV, the state government had extended several relief measures like transfer of the title of land measuring 386.73 acres in possession of BHPV