New Delhi: Government has invited expression of interest (EoI) for selling its entire stake in Bharat Pumps, a loss-making firm under the Heavy Industry Ministry. It has asked interested parties to submit the EoI physically by May 28.
The Allahabad-based company is the third central public sector enterprise (CPSE) under the ministry for which EoI has been floated for strategic sale in the past one month. Scooters India and Hindustan Newsprint are the other two. The government is eyeing Rs 80,000 crore through disinvestment in 2018-19, lower than the Rs 1 lakh crore raised last fiscal ended March 31. Besides, the government plans to sell 76 per cent stake in Air India, according to the preliminary information memorandum released late last month on strategic disinvestment of the national carrier.
Resurgent India has been roped in as the Transaction Advisor to Department Of Investment & Public Asset Management (DIPAM) for “advising and managing the proposed strategic disinvestment of 100 per cent of the shareholding of the President of India in Bharat Pumps & Compressors Limited,” said the EoI posted by the Department of Heavy Industry. Strategic disinvestment denotes sale of substantial portion of government shareholding in identified CPSE, up to 50 per cent or more, along with transfer of management control.
The Cabinet Committee of Economic Affairs had earlier approved the proposal for providing financial assistance of Rs 111.59 crore as Non-Plan loan to the company for clearance of statutory dues such as provident fund and gratuity of retired employees. BPCL was set up on January 1, 1970 as an import substitution unit for manufacturing sophisticated process pumps and compressors. It now is engaged in manufacture and supply of heavy duty pumps & compressors and high pressure seamless and CNG gas cylinders / cascades to cater the needs of oil exploration & exploitation, refineries, petro-chemicals, chemicals, fertiliser and downstream industries.