BHPV struggles to complete Rs 200cr orders

Vizag-based Bharat Heavy Plate and Vessels Limited (BHPV), the country's biggest public sector engineering and fabricating giant, is struggling to complete existing orders worth Rs 200 crore.

The earlier NDA government had included the loss-making public sector BHPV in the disinvestment list. BHPV's accumulated losses are close to Rs 200 crore and has eroded 50 per cent of the company's total net worth.

"At present, we have orders worth Rs 200 crore on hand. A majority of these orders are from oil companies like Indian Oil Corporation and Hindustan Petroleum Corporation. We are trying to complete 80 per cent of these orders by the end of this fiscal and the remaining orders during the first quarter of next fiscal," D N Raju, chief general manager and in-charge of the BHPV plant, told Business Standard.

BHPV has participated in tenders for Rs 200 crore worth of new works and it expects to bag between Rs 30 crore and Rs 40 crore worth of orders during this financial year, he said.

"We have prepared fresh proposals for the resurrection of BHPV which will be submitted to the government soon. We are looking forward for the government's support. However, we are taking all possible steps to complete the existing orders by the end of this fiscal. To this end we are taking advances from customers to complete the orders," Raju pointed out.

BHPV, which has been facing severe financial problems, has requested the central government for counter guarantee facilities for Rs 130 crore to complete existing orders and take up the new orders.

Without financial support to complete the existing orders, BHPV may not be in a position to bag new orders. While financial institutions have come forward to offer financial support they have asked for government guarantee for their funds.

The local MP and former chief minister of Andhra Pradesh, N Janardhan Reddy, recently met BHPV officials and workers and promised to get financial support from the central government immediately.