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Disinvestment of BEML: Govt initiates process

By IndianMandarins- 16 Dec 2019
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The government is likely to sell its 28 per cent stake in Bharat Earth Movers Limited (BEML) through strategic disinvestment to retain 26 per cent after dilution of its shareholding in the public sector undertaking. The government holds 54.03 per cent stake in BEML.

BEML, a mining equipment maker, has diversified into manufacturing of rail coaches and defence production that already accounts for almost half of its current topline.

Cabinet Committee on Economic Affairs (CCEA) in October, 2016 had given an in-principal approval for strategic disinvestment of 26 per cent equity shares in BEML. Sources said that the government will divest 28 per cent of its stake in the company through strategic disinvestment and there is no plan to demerge the business verticals.

The government has set an all-time high disinvestment target of Rs 1.05 lakh crore, up from Rs 90,000 crore projected in the Interim Budget 2019-20 in February. In 2018-19, the Centre raised Rs 84,972 crore from CPSE disinvestment, while in 2017-18, the figure was Rs 1, 00,056 crore.

CCEA has recently approved strategic disinvestment of its equity shares in five PSUs – BPCL, Shipping Corporation of India (SCI), Container Corporation of India (CONCOR), Tehri Hydro Development Corporation (THDC) and North Eastern Electric Power Corporation (NEEPCO).

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