Govt to divest holdings in defence PSUs
10 Feb 2021
2 Min Read
CW Team
The government will divest its shareholdings in defence public sector undertakings (PSUs)鈥擬ishra Dhatu Nigam Ltd (MIDHANI) and Garden Reach Shipbuilders and Engineers Ltd, apart from its shareholding in Bharat Earth Movers Ltd (BEML).
The Ministry of Defence (MoD) said this week that preliminary bids have been invited by the government to sell its 26% stake in BEML along with the transfer of management control. The government has a 74.5% stake in Garden Reach Shipbuilders, and 74% in MIDHANI.
The Union Budget 2021-22 rolled out a new privatisation policy for PSUs that divides public sector enterprises into strategic and non-strategic ones. The strategic sector includes space and defence, atomic energy, coal and other minerals, transport and telecommunications, power, petroleum, insurance, financial services and banking.
Make in Steel 2021
24 February
4th Indian Cement Review Conference 2021
17-18 March
In strategic sectors, the 鈥渂are minimum鈥� presence of existing public sector commercial enterprises at holding company level will be retained under government control. The remaining will be considered for privatisation or merger or subsidisation with other public sector enterprises or closure.
PSEs in non-strategic sectors will be considered for privatisation wherever possible, or considered for closure.
: Only a bare minimum of government control is envisioned in the new divestment policy for 鈥渟trategic sectors鈥�, including defence.
Also read: Centre may match states鈥� divestment receipts
Also read: Union Cabinet clears new divestment policy
Also read: What is strategic about disinvestment?
The government will divest its shareholdings in defence public sector undertakings (PSUs)鈥擬ishra Dhatu Nigam Ltd (MIDHANI) and Garden Reach Shipbuilders and Engineers Ltd, apart from its shareholding in Bharat Earth Movers Ltd (BEML).
The Ministry of Defence (MoD) said this week that preliminary bids have been invited by the government to sell its 26% stake in BEML along with the transfer of management control. The government has a 74.5% stake in Garden Reach Shipbuilders, and 74% in MIDHANI.
The Union Budget 2021-22 rolled out a new privatisation policy for PSUs that divides public sector enterprises into strategic and non-strategic ones. The strategic sector includes space and defence, atomic energy, coal and other minerals, transport and telecommunications, power, petroleum, insurance, financial services and banking.Make in Steel 202124 February Click for event info4th Indian Cement Review Conference 202117-18 March Click for event info
In strategic sectors, the 鈥渂are minimum鈥� presence of existing public sector commercial enterprises at holding company level will be retained under government control. The remaining will be considered for privatisation or merger or subsidisation with other public sector enterprises or closure.
PSEs in non-strategic sectors will be considered for privatisation wherever possible, or considered for closure.Image: Only a bare minimum of government control is envisioned in the new divestment policy for 鈥渟trategic sectors鈥�, including defence.
Also read: Centre may match states鈥� divestment receipts
Also read: Union Cabinet clears new divestment policy
Also read: What is strategic about disinvestment?
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