New Delhi, Feb 8 (PTI) Defence public sector undertakings BEML, GRSE Ltd and Mishra Dhatu Nigam Ltd are set for disinvestment, the government said in Rajya Sabha on Monday.
The defence ministry is aiming at divesting parts of the state-run defence sector companies to enhance their efficiency in sync with the government's broader objective of boosting indigenous production of military hardware and weapon systems.
'Defence Public Sector Undertakings (DPSUs) set for disinvestment are BEML Ltd, Garden Reach Shipbuilders & Engineers Limited (GRSE) and Mishra Dhatu Nigam Limited (MIDHANI),' Minister of State for Defence Shripad Naik said in a written reply in Rajya Sabha.
He said the policy of disinvestment of minority stake without transfer of management control is being followed for priority sector including DPSUs to unlock value and promote public ownership.
'Policy of disinvestment of minority stake without transfer of management control is being followed for priority sector including defence PSUs to unlock value, promote public ownership, to meet the minimum public shareholding norms of SEBI (Securities and Exchange Board of India) and for ensuring higher degree of accountability,' Naik said 'For non-priority sector where competitive markets have come of age, the policy of strategic disinvestment is followed,' he added.
BEML, established in 1964, manufactures a wide range of products relating to sectors like defence, rail, power, mining and infrastructure.
According to the BEML's website, the company's products are exported to more than 67 countries besides supplies to various domestic entities.
GRSE is a shipbuilding company that operates under the administrative control of the Ministry of Defence. It primarily caters to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard.
Mishra Dhatu Nigam Limited produces various super alloys, steel components and other materials for defence and other strategic sectors.
To a separate question, Naik said investments of around Rs 1,000 crore and Rs 900 crore have been reported for the Uttar Pradesh defence industrial corridor and the Tamil Nadu defence industrial corridor respectively. PTI MPB ANB ANB