Sources told The Hindu that due to certain formalities and legal procedures, the merger would not be possible in 2012.
The merger of Bharat Heavy Plate and Vessels (BHPV) with Bharat Heavy Electricals Limited, a navratna company, will be possible only in 2013 going by the pace at which the procedural clearances are obtained.
Sources told The Hindu that due to certain formalities and legal procedures, the merger would not be possible in 2012 as thought earlier. The BHEL board on May 23 formally cleared the merger decision, which was hanging fire since BHPV was made a holding company of BHEL on May 10, 2008. The file is being scrutinised by the Department of Heavy Industries. Once it gets the nod, it will be placed before the Group of Ministers.
Subject to clearance of their doubts and clarifications, it will be placed before the Union Cabinet. The entire process, sources in BHPV said, will take five to six months.
After Cabinet approval, objections, if any, will be sought to declare that BHPV ceased to exist.
After this, the file will be referred to Department of Heavy Industries and subsequently issue the gazette notification for the merger.
BHPV National Employees’ Union general secretary V. Babu Rao said they would pursue the merger issue with the Central leaders after the Presidential poll.
“As of now everything is progressing well. We hope the merger will become a reality early next year,” he said.
The management has agreed to give 2007 pay-scales to all the employees from the date of merger. As part of a Memorandum of Understanding reached by the recognised union with the management, BHPV employees, including those who have taken voluntary retirement or retired from service, will also get arrears for 1997 pay-scales with retrospective effect once the accumulated losses get absorbed up to 50 per cent.
The employees, as per the agreement, will not get arrears for 2007 wage revision. The revision will be effective from the date of merger. At 2007 pay scales, the wage benefit will be in the range of Rs.15,000 to Rs.25,000, according to union leaders.