"For protecting the interest of employees working in BHPV, the state government has extended several relief measures like transfer of the title of land measuring 386.73 acres in possession of BHPV - which was given to them in 1965 - as gift deed in its favour, waiver of registration and stamp duties, sales tax arrears of Rs 42.16 crore, non-agricultural land assessment (nala) tax of Rs 43 lakh and waiver of dues towards water, tax property tax and vacant land tax of Rs 3.96 crore," the chief minister stated in a press release on Friday.

Post takeover, around 1,332 of the total 1,512 employees of BHPV (balance unqualified would be redeployed) would be continued in employment. It would create indirect employment to thousands of people and the existing ancillaries would be doubled to 34, he added.

It may be recalled that the state government had handed over 393.86 acres to BHPV in Tungalam, Akkireddypalem, Mindi and Chinna Gantyada villages of Visakhapatnam district in 1965, for setting up the factory and township. Between 2002 and 2005, BHPV incurred huge losses and was referred to the BIFR.