Bharat Pumps divestment gets approval, will be Modi govt's first strategic PSU sale

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

Prime Minister Narendra Modi. PTI

Prime Minister Narendra Modi. PTI

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 percent 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.