The Central government may soon proceed with financial bids for the strategic sale of defence PSU BEML. The government, however, didn't give any timeline for the same.

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In an exclusive conversation with CNBC-TV18, DIPAM secretary Tuhin Kanta Pandey said the government was actively pursuing last-mile clearances on some of the land parcels of BEML, with the state government.

"There have been last mile clearances needed from the Karnataka government, especially there was an issue with the government of Kerala that has been sorted out in terms of land and registration of the land, which is there. There are certain issues relating to the Mysuru land (which) still remains with the government of Karnataka and as for the court judgments and others, there will be good movement in my opinion to forward on that," the DIPAM secretary stated.

"We had a significant year last year in terms of demergers, NMDC Steel which has been successfully listed, then BEML, BLAL has also been listed, and then there is SCI LAL, which is holding the land assets of SCI, which is already demerged and we are now getting it ready for listing, DIPAM secretary added.

SCI Land Assets

Speaking on the listing of SCI Land Assets, the DIPAM secretary said, "Similarly on the SCI Land Assets, we have to get last mile clearances from govt of Maharashtra, so these will be sorted out I think and then we will proceed forward with bidding."

Back in January 2021, the government invited preliminary bids for selling a 26 percent stake in BEML along with management control. It received multiple expressions of interest (EoIs) for the sale. Following that, in October 2022, BEML demerged its non-core businesses into BEML Land Assets (BLAL) and listed the new company on the bourses on April 19 this year.

Shares of BLAL settled 2 percent lower at Rs 155.35 on the NSE in Friday's trade. The stock opened at Rs 158.10, and hit a high of Rs 159 in the intra-day trade, before erasing gains.

At present, the government holds a 54.03 percent stake in BEML, which is a public sector undertaking under the defence ministry.

BEML had 'in-principle' decided to disinvest 26 percent of the equity share capital of BEML through strategic disinvestment along with transfer of management control as approved by the government of India.

BEML is a diversified company supplying product, services and support to defence and aerospace, mining and construction, and rail and metro for clients within and outside India.

First Published:Jun 2, 2023 4:32 PM IST