Moving ahead with its ambitious plan to sell loss-making state-owned units, the government has started the process of strategic sale or privatisation of two PSUs — Bharat Pumps and Compressors, and Bridge and Roof Co.
The Ministry of Heavy Industries, which has administrative control over the two central public sector enterprises (CPSEs), has called pre-bid meetings later this month and is roping in reputed law firms with experience and expertise in mergers & acquisitions or takeovers or strategic disinvestment to act as legal adviser and assist the government.
"The strategic sale of Bharat Pumps and Compressors and Bridge and Roof will be through a two-stage auction process, which involves submitting technical and financial bids. To start the process, we have called pre-bid meetings," sources in the in the Ministry told PTI.
Pre-bid meetings are usually held, if previously mentioned in the solicitation documents, during the bid/proposal preparation period. Their purpose is to clarify concerns that bidders may have with the solicitation documents, the scope of work and other details.
Bharat Pumps and Compressors and Bridge and Roof are two of the seven loss-making entities identified by the government where it plans to sell its entire stake to a strategic bidder. Both the CPSEs come under the administrative control of the Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises, Government of India.
In September, the government had decided 'in principle' to disinvest its 100 per cent equity in Bharat Pumps and Compressors Limited through a strategic sale with the transfer of management control.
Bharat Pumps is engaged in the manufacturing and supply of heavy duty centrifugal pumps, reciprocating compressors, high-pressure seamless Industrial/CNG gas cylinders and cascades, required for petroleum exploration and exploitation, refineries, petrochemicals, chemicals and fertilisers, power sector and other downstream industries process.
The strategic sale roadmap was prepared by government think tank NITI Aayog.
Strategic disinvestment denotes sale of a substantial portion of government shareholding in identified CPSE, up to 50 per cent or more, along with the transfer of management control.