BEML to form subsidiary for demerger of surplus land, assets ahead of disinvestment
BEML has received an approval from the Department of Investment and Public Asset Management (DIPAM) and NITI Aayog in this regard
Earlier in March this year, BEML had announced the appointment of Deloitte as consultant for advising, undertaking and implementing demerger of non-core assets
New Delhi: Defence PSU BEML Limited is going to incorporate a wholly-owned subsidiary for the demerger of surplus land and assets ahead of its disinvestment and has received an approval from the Department of Investment and Public Asset Management (DIPAM) and NITI Aayog in this regard. In a regulatory filing to the stock exchanges on Saturday, BEML said, "Further to our letter referred above, Ministry of Defence (MoD) vide mail dated 11.06.2021 conveyed that the Department of Investment and Public Asset Management (DIPAM) and NITI Aayog have concurred to the proposal of Incorporation of Wholly Owned Subsidiary [WoS] of BEML Limited for Demerger of surplus land and asset as part of BEML's strategic disinvestment process undertaken by Government of India."
Disinvestment: BEML has appointed Deloitte for de-merger of non-core assets
Earlier in March this year, BEML had announced the appointment of Deloitte Haskins & Sells LPP as consultant for advising, undertaking and implementing demerger of non-core assets of the company ahead of its disinvestment. The government has plans to hive off non-core assets of disinvestment-bound PSUs in order to make the deal more lucrative for investors. According to sources in DIPAM, the idea behind doing so is to allow investors to pay only for the core assets that they wish to acquire and not for surplus land and assets that have nothing to do with the core business.
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Budget 2021 called for monetisation of non-core PSU assets
While presenting the Budget for 2021-22, Finance Minister Nirmala Sitharaman had said that idle PSU assets will not contribute to Atmanirbhar Bharat. While mentioning that non-core assets consisted largely of surplus land with government ministries/departments and Public Sector Enterprises, the minister had proposed to use a Special Purpose Vehicle (SPV) in the form of a company to carry out monetisation of idle land.
BEML's move to monetise non-core assets ahead of its disinvestment is in line with the announcement made by Sitharaman.
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