FCC

Soon, govt to invite financial bids for selling 26% in BEML

2023-05-09

Given that BEML's non-core business was listed on the bourses last month, the government may shortly issue a financial request for proposals for the strategic sale of BEML. The government issued a preliminary invitation for bids in January 2021 for the sale of a 26% interest in BEML together with management control. For the sale, it got numerous expressions of interest (EoIs).

Then, in October of last year, BEML separated its non-core companies into BEML Land Assets, and on April 19, 2023, the new firm floated on the stock exchanges.

"Land and other non-core assets have been fully listed. We are currently accepting financial offers for the core assets, which are connected to the construction and defence industries, an official told PTI.

Currently, the government owns 54.03% of BEML, a defence ministry-affiliated public sector organisation.

The sale of the government's 26% interest in BEML, at the present market pricing, will bring in roughly Rs 1,500 crore for the exchequer. The strategic disinvestment and transfer of management control of the corporation were approved by the Union Cabinet in 2016.