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Friday 13 December 2019
Economy BEML Limited will be privatised

BEML Limited will be privatised

New Delhi: The Union government has given its ‘in-principle’ approval to the proposal of a strategic disinvestment of BEML Ltd to the extent of 26% of government shareholding, with a transfer of management control to the strategic buyer. The government has appointed a transaction advisor, a legal advisor and an asset valuer for the purpose in accordance with the procedure and mechanism applicable.

After completion of the process above, the government will have to approve the final proposition once again. The amount to be mobilised through the sale of government equities in BEML can be known only after completion of the process.

BEML Limited (formerly Bharat Earth Movers Limited) was established in May 1964 as a public sector undertaking for the manufacture of rail coaches and spare parts and mining equipment at its Bangalore complex. The company has partially disinvested. At present, the Union government owns 54% of the total equity; members of the public, financial institutions, foreign institutional investors, banks and employees own the rest of 46% of the stakes. The details of the disinvestment proposal are given below, which includes a breakup of the extent of land and other assets of BEML Ltd as on 31 March of this year.

Particulars Gross carrying value

(Rs. in Crore)

Accumulated Depreciation

(Rs. in Crore)

Net carrying value

(Rs. in Crore)

(i)LAND (total 4,191.56 acres)

Free Hold (2,696.63 acres)

Lease Hold (1,494.93 acres)

 

12.86

80.39

 

0.65

 

12.86

79.74

(ii)OTHER ASSETS
Buildings 151.35 14.65 136.70
Plant and Equipment 272.41 43.38 229.03
Furniture and Fixtures 4.74 2.08 2.67
Vehicles

Given on lease

Own use

 

4.26

5.25

 

1.06

1.22

 

3.20

4.03

Office Equipment 2.27 1.16 1.11
Road and Drains 15.33 6.12 9.21
Water Supply Installations 2.38 0.09 2.29
Railway Sidings 8.69 1.99 6.70
Electrical Installation 18.06 4.36 13.70
Jigs and Fixtures 15.63 6.28 9.34
Special Tools 10.22 5.25 4.97
Computers and Data processing units 10.00 7.12 2.88
Total 613.86 95.42 518.44

The details of the profits made, dividend and taxes paid to the government during the last 10 years (in crore rupees) are as under.

Year Profit After Tax (PAT) Dividend (Govt Share) Contribution to the exchequer (taxes)
2007-08 225.65 27.00 595.63
2008-09 268.84 27.00 580.34
2009-10 222.85 22.50 688.25
2010-11 149.76 22.50 657.92
2011-12 57.25 11.25 682.58
2012-13 (79.87) 5.63 628.76
2013-14 4.68 2.25 653.67
2014-15 6.76 2.25 557.65
2015-16 53.15 9.00 671.63
2016-17 72.55 18.00 693.46

This information was given by Minister of State for Defence Subhash Bhamre in a written reply to MB Rajesh and other MPs in Lok Sabha today.

It has been observed that the current government consciously avoids the term “privatisation”, most probably because of the negative political consequences it invited during the regimes of PV Narasimha Rao and AB Vajpayee.

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