RS-BEML-DISINVESTMENT

All precautions being taken in disinvestment of PSU: Def Min
    New Delhi, Jul 8 (PTI) Government on Monday defended in
Rajya Sabha its plan to disinvest 26 per cent of its stake in
public-sector BEML and asserted that all precautions are being
taken so that there are no question marks on national
security.
    The government has a shareholding of 54.03 per cent in
the PSU Bharat Earth Movers Limited (BEML) which is involved
in defence, rail and mining sectors.
    Allaying fears expressed by members during the Question
Hour, Defence Minister Rajnath Singh said all aspects of
strategic sale are taken into account before disinvesting in a
PSU company.
    He said it has been the policy of all governments as well
as recommendation of the Niti Aayog on strategic sale of
assets in public sector undertakings.
    "If strategic disinvestment is being done, all
precautions are being taken so that there is no question mark
on our national security. We are taking all precautions and
national security is foremost for our government," the
minister told Rajya Sabha.
    He said BEML has businesses in several segments and the
defence segment has only 16.16 per cent, while its rail and
network business comprises 31.12 per cent of its total
business and mining and construction is 52.27 per cent.
    "It is not that defence work is being done in 100 per
cent of the total work done by the company," he said, adding
that a committee decides on the disinvestment.
    The Government has not deferred the privatisation of
BEML, the minister said in written reply to a query.
    "The Government had given 'in-principle' approval for
strategic disinvestment of BEML Ltd. to the extent of 26 pc
out of the Government shareholding of 54.03 per cent with
transfer of management control to strategic buyer," Singh
said.
    The Minister said disinvestment helps to improve
management efficiency through professional competence and also
allows the government to focus on its core functions instead
of non-core sectors.
    "Government of India is promoting Indian manufacturing
companies in the defence sector and this disinvestment is
being done while keeping this aspect in mind," the minister
said when some opposition members alleged that the government
is selling out profitable defence PSUs.
    Congress leader A K Antony, a former defence minister,
said defence PSUs were started after carefully studying
national security and national interests.
    "Our former PMs from Jawaharlal Nehru onwards thought
that whatever happens in any eventuality, our armed forces
should not suffer and be dependent on foreign vendors. That is
why these defence PSU were started and most defence PSUs are
running profitably.
    "The government is one by one privatising defence PSUs
and this is the latest one. Why is the government going below
51 per cent and this policy is against national security and
national interests," he said.
    Elaborating on the BEML disinvestment, the minister said,
"The strategic disinvestment process has 16 steps and only
five steps have been accomplished so far in this case."
    He said the transaction advisor, legal advisor and asset
valuer were appointed by the government as per the procedure
and mechanism laid down for this purpose.
    "It has been decided to hive off the surplus land and
other assets from the strategic disinvestment of BEML and
dispose them of separately.
    "The Expression of Interest and Preliminary Information
Memorandum document have been prepared by the appointed
Advisors and submitted to the government. After completion of
the process, specific approval of the government will be
sought again," Singh said in his written reply.
    In reply to another supplementary, the minister noted
that India was able to avert the adverse impact of global
slowdown because of its high rural demand and not because of
performance of PSUs. PTI SKC/MJH
RT RT

(This story has not been edited by THE WEEK and is auto-generated from a PTI feed.)