BHEL clarifies on news item regarding Bharat Pumps

With reference to the news item appearing in a leading financial daily titled "Bharat Pumps buy to aid Bhel's bottomline", Bharat Heavy Electricals Ltd (BHEL) has clarified as below:

In the revival process of Bharat Pumps & Compressors Ltd (BPCL), Allahabad, based on the recommendation of BRPSE (Board of Reconstruction of Public Sector Enterprises), Committee of Secretaries and Group of Ministers, the Cabinet has approved a proposal in the Company has been asked to provide Management support to BPCL through the reconstruction of the Board of BPCL by providing Chairman and one part-time Director from the Company and selection of Managing Director by the Company.

The addition, the Company is to provide an amount of Rs 20 crores as subordinate debt to BPCL for revival of the Company with and option to convert the above amount into equity at an appropriate time at the sole discretion of the Company.

The Board of BPCL has since been re-constituted on the above lines.

Hence, it may be seen that the Company is only to provide Management support to Bharat Pumps & Compressors Ltd.

Source : Equity Bulls

Keywords