New Delhi: The Competition Commission of India gave its permission to public sector firm Water and Power Consultancy Services (WAPCOS) Ltd to acquire shares of National Projects Construction Corporation (NPCC). The fair trade regulator said in a tweet that it "approves the acquisition of shares of National Projects Construction Corporation Limited by WAPCOS Limited."
Both the public sector undertakings (PSUs) are categorised under Miniratna, Category I. This means that they have made profits continuously for the last three years or earned a net profit of Rs 30 crore or more in one of the three years. NPCC got upgraded to the Miniratna Category I status only in November last year. Both the PSUs come under the administrative control of Ministry of Water Resources, River Development & Ganga Rejuvenation.
The deal "involves the acquisition of 98.89 per cent shareholding held by the President of India, represented by and acting through the Ministry of Water Resources, River Development & Ganga Rejuvenation, Government of India in NPCC to WAPCOS along with the transfer of management control," a notice filed with the competition watchdog said.
After the transaction takes place, the ownership of NPCC will transfer from the government to WAPCOS.