Govt okays strategic divestment of Bharat Pumps and Compressors

New Delhi: Government has accorded "in-principle" approval for strategic disinvestment of Allahabad-based Bharat Pumps and Compressors Limited.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi.

Strategic disinvestment denotes sale of substantial portion of government shareholding in identified central public sector enterprises (CPSE), up to 50 per cent or more, along with transfer of management control.

It also approved the proposal for providing financial assistance of Rs 111.59 crore as Non-Plan loan to Bharat Pumps and Compressors Limited.

With the help of the financial assistance, statutory dues such as provident fund and gratuity of retired employees will be discharged and the outstanding dues of CISF will be cleared.

"It will motivate the employees and improve the performance of the company. This will put an end to further legal complications and penal action against the company," an official statement said.