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BELEAGUERED Bharat Heavy Plate and Vessels Limited (BHPVL), an engineering, procurement and construction (EPC) company and subsidiary of the state-owned Bharat Yantra Nigam Limited (BYNL) is up for sale.

Bharat Heavy Electricals Limited (Bhel) is tipped to be the front runner to acquire it. Engineers India Limited (EIL) and Hindustan Petroleum Corporation Limited (HPCL) are also said to be in the race. SBI Caps has already done the due diligence study.

“Bhel has envisaged substantial interest in acquiring BHPVL. EIL has also conducted due diligence through SBI Caps. However they are yet to give their final report,” Om Prakash, managing director, BHPVL told ET. Mr Prakash also did not rule out the possibility of listing this company after cleaning its balance sheet. The company would require infusion Rs 1,000 crore for its revival package. As per the estimates made by EIL and Bhel, investments of Rs 300 crore would be required for replacement of the existing machinery which are around 30 years old. Both companies propose additional machines for new product lines having market potential in oil and gas and power industries.

Besides investment in equipment, there will be requirement of over Rs 100 crore for the working capital needs. BHPVL also seeks financial restructuring to clean its balance sheet with waiver of loans and other statutory liabilities accrued as on date.

However, the firm is expected to close the current fiscal with a turnover of Rs 175 crore and its order book position is worth over Rs 400 crore.

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