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Govt starts preparation for disinvestment of BEML

The government has started the preparatory work for the disinvestment of 26 percent stake in state-run BEML Ltd, sources said

Cabinet Committee approved BEML disinvestment in 2016 only, said sources
Cabinet Committee approved BEML disinvestment in 2016 only, said sources

New Delhi: The government has started the preparatory work for the disinvestment of 28 percent stake in state-run BEML Ltd, sources said. According to people aware of the matter, the Centre is planning to offload 28 percent stake while retaining 26 percent in the public sector undertaking. The government holds 54.03 percent stake in the diversified engineering company. “The government is set to disinvest 28 percent of its stake in BEML through strategic disinvestment and there is no plan to demerge the business verticals,” a source in the knoe of the matter said. The person added that “preparatory work” for the same has already been initiated.

Cabinet Committee approved BEML disinvestment in 2016

The Cabinet Committee on Economic Affairs (CCEA) has given an in-principle nod to the strategic disinvestment of 26 percent stake owned by the Centre in BEML Ltd in October 2016. The news comes as the government chases a disinvestment target of Rs 1.05 lakh crore for the financial year 2019-20. It has managed to raise Rs 17,364.26 crore through disinvestment so far. The CCEA gave approval to the strategic disinvestment of five PSUs — Bharat Petroleum Corporation Ltd, Shipping Corporation of India, Container Corporation of India, Tehri Hydro Development Corporation and North Eastern Electric Power Corporation.

ALSO READ: BEML disinvestment: Govt invites global bids to sell 26% stake & mgmt control

The backdrop

BEML has been witnessing a series of protests by various unions and associations of employees in the recent past against the government’s decision. The workers have said that the relay protest would continue till the government rolls back the privatisation decision. BEML is a mining equipment maker which has diversified into manufacturing of rail coaches and defence production that already accounts for almost half of its current topline.

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