Our Bureau, Visakhapatnam, July 21
The Bharat Heavy Plate and Vessels (BHPV) Retired and VRS Officers' Association has demanded that the management of BHEL, which is set to take over BHPV, clear its wage arrears before the merger. The merger is likely to be announced sometime in August.
The association, which met here on Sunday, passed a resolution to the effect. T.S.R. Krishna Reddy, the president of the association, said BHPV, presently a subsidiary of BHEL, may in all probability be merged into BHEL next month. "We are not opposed to the merger. It is the logical culmination and it is desirable, but it is the responsibility of the BHEL management to clear the wage arrears of the retired officials and other staff," he said.
Waivers given
He said both the Andhra Pradesh Government and the Union Government had given a number of concessions and waivers to BHEL to facilitate the takeover in 2008. The State Government had handed over 386 acres of very valuable land beside the National Highway, valued at Rs 4,000 crore, besides waiving the stamp duty amounting to Rs 100 crore. Other concessions by the State Government, such as sales tax waiver, amounted to Rs 47 crore, adding up in all to Rs 4,146.55 crore.
The concessions and waivers given by the Union Government amounted to Rs 415.61 crore and banks were also generous in offering one-time settlements for loan, sacrificing Rs 114 crore of penal interest. Paid-up capital of Rs 33 crore was transferred to BHEL and the plant and machinery transferred to BHEL was valued at Rs 800 crore. "In spite of all these concessions and waivers, and other incentives for takeover, is unfortunate that the BHEL management is not settling the issue of wage revision for the existing staff and the arrears for the retired staff. The employees are being paid at 1992 scales and the existing employees are being paid interim relief. The retired staff are not offered that relief. We demand the BHEL management settle our dues at 2007 scales before announcing the merger," Reddy said.
He said the total amount due to the retired officials would add up to Rs 70-80 crore at 2007 scales, and each official would stand to gain not less than Rs 10 lakh or so. "We need the amount desperately and there is no justification for the BHEL management to postpone the issue any longer. At the time of takeover, the management gave a clear undertaking that all assets and liabilities of BHPV would be taken over. The BHEL management should honour the commitment, as the company is getting profits for three consecutive years," he demanded.
The association has 173 members.
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