Controversial CMD of BEML Natarajan retires

Parting gift: draws up Rs 10,000 cr turnover target plan for company

The controversial chairman and managing director of BEML Ltd, V R S Natarajan announced on Monday evening that he has retired as the CMD of public sector defence company.

In a letter released to media by the CMD’s office of BEML, Natarajan said he retired as CMD on September 30, 2012 after attaining superannuation. Natarajan was under suspension for his alleged role in Tatra truck scam, which was made public by former chief of Army General V K Singh.

The letter, which carried the signature of Natarajan listed out some of his achievements as the CMD of the company over the last decade.

“As you may be aware, I am laying down office as on September 30, 2012, on attaining superannuation after an eventful record of unprecedented contribution made to the company during my tenure of almost 10 years as its CEO. We have firmed up our BEML vision 2013 to achieve the turnover of Rs 5,000 crore in 2013-14 and accordingly taken several initiatives through diversification, modernisation and expansion, including organizational restructuring,” he said.

Without mentioning anything about the alleged truck scam, Natarajan said during his tenure, the turnover and profits of the company were pushed up to record levels. As a result of this, even Rs 10 per share of BEML had touched Rs 1,800 level, giving 6,465 per cent growth in five years, making BEML “the highest wealth creator” for its shareholders and ranked first among the listed Central PSUs and fourth among the listed Indian corporates.

"The organisation has also grown horizontally with its upsurge image and brand building, in addition to radical vertical growth and internationalised its presence by exporting to over 55 countries with local BEML presence in Brazil, China, Malaysia and Indonesia," he said.

With a view of ensure the future growth of the company, consistent with its diversification, modernisation and expansion efforts, the company has finalsed “Corporate Plan-II” to move from Rs 5,000 crore in 2013-14 to Rs 10,000 crore turnover trajectory by 2019-19. It has added two new business units -- Aerospace and Dredging -- duly approved by the Board to take the organisation to new heights.

“I fervently believe and confident that the great BEML will surge ahead as a vibrant and performing organisation, steering clear of obstacles and challenges confronting it for now,” Natrarajan added.

Natarajan is being questioned by the Central Bureau of Investigation (CBI) in a case pertaining to alleged irregularities in procurement and supply of all-terrain Tatra vehicles to the Army.

Gen Singh, who retired on May 31, 2012 as chief of Army, had alleged in March that he was offered Rs 14 crore bribe by Lt Gen (retd) Tejinder Singh to clear a supply of a tranche of 600 ‘sub-standard’ Tatra trucks from BEML.

On June 6, the Defence Ministry sought an explanation from Natarajan for serving a legal notice on Gen Singh demanding an apology for his alleged defamatory statements against the defence PSU. Later, the ministry suspended him as CMD of BEML.