New Delhi: The Cabinet today approved a financial restructuring of Bharat Pumps and Compressors Ltd (BPCL) by writing off over Rs 150 crore debt.

"The Cabinet, which met under the chairmanship of Prime Minister Manmohan Singh approved to write off loan of Rs 102.75 crore and interest dues of Rs 50.40 crore as on March 31, 2006," Information and Broadcasting Minister Priyaranjan Dasmunsi told reporters here.

It also approved a budgetary support of Rs 3.37 crore to the company to clear the outstanding CISF dues.

Earlier, the Ministry of Heavy Industries had proposed that the Oil and Natural Gas Corp (ONGC) take over BPCL but the Petroleum Ministry shot down the proposal.

"This decision will enable the company to have a clean balance sheet and would also enable it to compete in its field without carrying any past liabilities," he said.

The Cabinet, he said, also gave its approval for non- implementing the earlier Government decision to transfer shares to MTNL employees at a concessional rate of Rs 146 per share.

"The issue of offer of shares at the rate of Rs 146 per share to MTNL employees would be closed and fresh negotiations would be held with absorbed employees of MTNL in Group A, B, C and D categories," the minister said.

Separately, the Cabinet Committee on Economic Affairs approved a Rs 198.82 crore package for restoration/revial of damaged power supply infrastructure in Andaman and Nicobar Islands, which had been affected by the tsunami of 2004.

"The restoration work is likely to be completed in December 2007," he said.