Karnataka CM Siddaramaiah urges Centre to review BEML disinvestment

He raised concerns over govt's decision to sell 26% stake in BEML and hand over management control to the buyer

Karnataka Chief Minister Siddaramaiah has urged Prime Minister Narendra Modi to review the government's decision of disinvesting in Bengaluru-headquartered Bharat Earth Movers Limited (BEML) on the grounds of it being a strategic and profit making public sector enterprise.

Siddaramaiah's letter to the PM is the first instance of the Congress opposition raising concerns over the Karnataka Chief Minister Siddaramaiah has urged Prime Minister Narendra Modi to review the government's decision of disinvesting in Bengaluru-headquartered Bharat Earth Movers Limited (BEML) on the grounds of it being a strategic and profit making public sector enterprise.

Siddaramaiah's letter to the PM is the first instance of the Congress opposition raising concerns over the Union Government's decision to sell 26 per cent stake in BEML and hand over management control to the buyer.

"Disinvestment of strategic and profit making CPSE only leads to private sector investor reaping windfall benefits and profit at the cost of public and is likely to undermine the security of the country," wrote Siddaramaiah in the letter.

The government gave an in-principle agreement to sell its stake in BEML in January as part of its overall plan to disinvest in PSUs that were not strategic in nature. The worker unions in BEML have strongly protested the move, arguing that they compete with private players without subsidies or sanctions from the government.

With over 8,000 employees, most of whom are employed at BEML's nine manufacturing units in Karnataka, the Congress is looking to capitalise on worker sentiments ahead of the state assembly elections next year. The PSU also owns vast swaths of prime real estate in Bengaluru, which was pointed out by Siddaramaiah.

BEML paid a dividend of Rs 18 crore to the government in FY16-17 and Rs 693 crore as taxes. The company is one of the leading defence equipment manufacturers to the Indian armed forces and also undertakes large civil manufacturing deals. The coaches for Bengaluru's Metro rail project are currently being manufactured by BEML.

Karnataka Chief Minister Siddaramaiah has urged Prime Minister Narendra Modi to review the government's decision of disinvesting in Bengaluru-headquartered Bharat Earth Movers Limited (BEML) on the grounds of it being a strategic and profit making public sector enterprise.

Siddaramaiah's letter to the PM is the first instance of the Congress opposition raising concerns over the Union Government's decision to sell 26 per cent stake in BEML and hand over management control to the buyer.

"Disinvestment of strategic and profit making CPSE only leads to private sector investor reaping windfall benefits and profit at the cost of public and is likely to undermine the security of the country," wrote Siddaramaiah in the letter.

The government gave an in-principle agreement to sell its stake in BEML in January as part of its overall plan to disinvest in PSUs that were not strategic in nature. The worker unions in BEML have strongly protested the move, arguing that they compete with private players without subsidies or sanctions from the government.

With over 8,000 employees, most of whom are employed at BEML's nine manufacturing units in Karnataka, the Congress is looking to capitalise on worker sentiments ahead of the state assembly elections next year. The PSU also owns vast swaths of prime real estate in Bengaluru, which was pointed out by Siddaramaiah.

BEML paid a dividend of Rs 18 crore to the government in FY16-17 and Rs 693 crore as taxes. The company is one of the leading defence equipment manufacturers to the Indian armed forces and also undertakes large civil manufacturing deals. The coaches for Bengaluru's Metro rail project are currently being manufactured by BEML..

"Disinvestment of strategic and profit making CPSE only leads to private sector investor reaping windfall benefits and profit at the cost of public and is likely to undermine the security of the country," wrote Siddaramaiah in the letter.

The government gave an in-principle agreement to sell its stake in BEML in January as part of its overall plan to disinvest in PSUs that were not strategic in nature. The worker unions in BEML have strongly protested the move, arguing that they compete with private players without subsidies or sanctions from the government.

With over 8,000 employees, most of whom are employed at BEML's nine manufacturing units in Karnataka, the Congress is looking to capitalise on worker sentiments ahead of the state assembly elections next year. The PSU also owns vast swaths of prime real estate in Bengaluru, which was pointed out by Siddaramaiah.

BEML paid a dividend of Rs 18 crore to the government in FY16-17 and Rs 693 crore as taxes. The company is one of the leading defence equipment manufacturers to the Indian armed forces and also undertakes large civil manufacturing deals. The coaches for Bengaluru's Metro rail project are currently being manufactured by BEML.