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New Delhi: Economic Times reports suggest that the government has approved the demerger of the core and non-core assets of BEML Ltd which would help clear a major hurdle in the company’s divestment process. The non-core assets include surplus land in Bengaluru and Mysore and KGF (Kolar Gold Fields) as well as transit houses (Delhi, Kolkata, Chennai, Mumbai).
The non-core assets are to be demerged into a separate entity called BEML Land Assets. Core assets include the corporate office, factories etc. of the company. The DIPAM (Department of Investment and Public Asset Management) will discuss the date for inviting financial bids next week and the government expects to conclude the sale process in the current financial year.
Economic Times reports indicate that the demerger process of both core and non-core assets has received in-principle approval from the MCA (Ministry of Corporate Affairs) and will therefore speed up the divestment process significantly.
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The government plans to sell a 26% stake in BEML. The divestment has been delayed multiple times as the process of demerging the assets was taking time.
BEML is a manufacturer of equipment for segments such as mining & construction, defence & aerospace and rail and metro, and supplies products and services to clients like Coal India, the Ministry of Defence and various metro rail corporations.
The defence sector has also been in the spotlight recently as the Defence Minister unveiled the third list of military systems and weapons to be put under import restrictions. A list of over 100 military systems/weapons under a staggered timeline of 3.5 years was revealed and orders worth more than `2.10 lk cr placed in the Indian industry for 5 years will be covered on the list.
The list will have equipment scheduled to be “completely indigenised” by December 2025.
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