BEML privatisation: Centre may invite bids in December

India

oi-Vicky Nanjappa

New
Delhi,
Aug
29:
The
government
is
likely
to
invite
financial
bids
for
the
privatisation
of
BEML
in
the
December
quarter,
an
official
said.

Earlier
this
month,
the
corporate
affairs
ministry
approved
the
demerger
of
land
and
non-core
assets
of
BEML
to
BEML
Land
Assets
Ltd.

The
official
said
that
every
shareholder
of
BEML
will
get
shares
in
BEML
Land
Assets
and
the
process
of
demerger
would
be
completed
by
the
end
of
September
or
early
October.

Workers’
interests
will
be
protected:
Nirmala
Sitharaman
on
bank
privatisation

“Once
the
demerger
process
gets
over
by
September-end
or
by
early
October,
the
financial
bids
for
strategic
sale
of
BEML
would
be
invited,”
the
official
told
PTI.

The
financial
bids
are
expected
in
the
October-December
quarter
and
the
draft
share
purchase
agreement
too
would
be
finalised
by
then,
the
official
added.

In
January
last
year,
the
government
invited
preliminary
bids
for
selling
26
per
cent
stake
in
BEML
along
with
the
management
control.

Multiple
Expressions
of
Interest
(EoIs)
were
received
by
the
government,
after
which
the
process
of
demerger
was
initiated
following
comments
from
investors.
Once
the
demerger
is
complete,
financial
bids
would
be
invited.

The
government
currently
holds
54.03
per
cent
in
BEML,
which
is
a
defence
public
sector
undertaking.
At
the
current
market
price,
sale
of
the
government’s
26
per
cent
stake
in
BEML
will
fetch
around
Rs
2,000
crore.

In
2016,
the
Union
Cabinet
approved
the
strategic
disinvestment
along
with
transfer
of
management
control,
of
the
company.

So
far,
the
government
has
raised
Rs
24,544
crore
through
disinvestment
in
the
current
financial
year
against
a
full
year
budget
target
of
Rs
65,000
crore.