BHPV chief puts in papers

Sailendra N Roy, managing director of Bharat Heavy Plate and Vessels (BHPV), has put in his papers.

Roy, who joined BHPV, the largest public sector engineering company in the country, in May 2002, was apparently unhappy with the decision of the board to declare the accumulated losses of BHPV.

BHPV has total accumulated losses of Rs 187 crore and the recent board meeting of the company approved the accounts of the company.

The declaration of the losses ensures that BHPV is a potentially sick company under the Sick Companies Act and has to inform the BIFR (Board for Industrial and Financial Reconstruction) as more than 50 per cent of its net worth has been wiped out.

Roy opposed the declaration of accumulated loses and apparently did not sign the minutes of the meeting. Local trade union leaders have also been demanding the resignation of the managing director for the declaration of the losses. "Due to personal reasons, I have put in my papers. The government may take decision on my resignation at any moment," Sailendra N Roy told Business Standard.

BHPV, according to him, had a bright future if the government approved the revival package submitted by the management.

As per the details of the package, the BHPV management has asked the central government to provide counter guarantees to the tune of Rs 180 crore for meeting the working capital needs and salary support of Rs 14-15 crore. Statutory dues of Rs 18 crore would also have to be paid by the union government, he said.

"At present, we have Rs 230 crore worth of orders in hand. We are trying to complete these orders on schedule and there is no reason why BHPV cannot be turned around," Roy added.