The government plans to disinvest its stake in defence public sector undertakings (PSUs) BEML Ltd, Garden Reach Shipbuilders & Engineers Ltd and Mishra Dhatu Nigam Ltd, the Rajya Sabha was informed on Monday.
The government has categorised central public sector undertakings (CPSUs) into strategic and non-strategic sectors. While it plans to privatise or shut down CPSUs in non-strategic sectors, there will be bare minimum presence of public sector enterprises in strategic sectors, as per the government's strategic disinvestment policy.
"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 to a question in the Upper House.
"Policy of disinvestment of minority stake without transfer of management control is being followed for priority sector including defence CPSUs to unlock value, promote public ownership, to meet the minimum public shareholding norms of SEBI and for ensuring higher degree of accountability," he added.
While BEML is present in defence and aerospace, mining and construction, and rail and metro businesses, GRSE primarily caters to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. MIDHANI produces super alloys, special steel, armour products, among others.
Defence, along with atomic energy and space, is classified as one of the strategic sectors as per the Centre's disinvestment policy. The government has set a target of raising Rs 1.75 lakh crore from disinvestment in 2021-22.