BEML privatisation: Panel to meet on Friday to finalise sale process

The government will sell 26 per cent out of the total 54.03% stake it holds in the company along with transfer of management control.

The inter-ministerial group (IMG) will meet on Friday to finalise the draft request for proposal (RFP) and share purchase agreement (SPA) for privatisation of BEML. The document will give the shortlisted bidders clarity on the liabilities they will have to take on board. 

The IMG chaired by secretary of the Department of Investment and Public Asset Management (Dipam) will finalise the draft RFP and SPA. The panel has secretary of the administrative ministry as co-chairman, secretary of department of public enterprises, legal affairs and department of economic affairs, among others. Once finalised by the IMG, the proposal will be sent to the Core Group of Secretaries on Divestment (CGD) headed by cabinet secretary. 

The RFP would shed light on the certain obligations that the successful bidder will have to undertake, such as employee protection, asset stripping, business continuity and lock-in of shares acquired in the proposed transaction.

The government will sell 26 per cent out of the total 54.03 per cent stake it holds in the company along with transfer of management control. The sale could fetch the government around Rs 1,500 crore.

 Last week, the company informed exchanges that Dipam and NITI Aayog have concurred to the proposal of incorporating a wholly owned subsidiary of BEML for demerger of surplus land and asset as part of the company’s strategic divestment process.