The government has mooted a proposal for the takeover of Bharat Pumps and Compressors Limited (BPCL) by a consortium of public sector companies led by Oil and Natural Gas Corporation (ONGC).
"A draft cabinet note for the takeover of BPCL has been prepared and circulated to various ministries for their comments," the sources said.
ONGC will be joined in this takeover attempt by Bharat Heavy Electricals Limited and Engineers India Limited.
"The understanding has been reached on the terms and conditions of the takeover. The conditions for the takeover has been approved by the committee of secretaries," they added.
The proposal for the takeover of BPCL by public sector companies was mooted by Board for Reconstruction of Public Enterprises (BRPSE) as part of its revival plan. The proposal was also vetted and approved by Committee of Secretaries (CoS).
BPCL is a subsidiary of Bharat Yantra Nigam Limited (BYNL), which is a holding company for six public sector companies.
It is catering to the needs of sectors like oil, fertilizers and chemicals for various types of pumps and compressors.
The company posted profits for the last fiscal after a long interval.
With takeover by ONGC, BHEL and EIL the company would be assured of strong management support and could also get orders from them.