JOIN USCentre asks bidders for BEML to disclose ties with China, Pakistan: Report
As the Centre aims to divest in public sector unit BEML Ltd, bidders who have submitted expressions of interest (EoI) to buy 26% stake in BEML have been asked to disclose any business ties they may have with neighbouring China or Pakistan.
People in the know of the developments told Mint that the government has asked for such a disclosure because of the strategic nature of the business. The company manufactures Prithvi missile launchers, military vehicles, railway and metro coaches. Its nine manufacturing units are spread across South India, including one in Bengaluru.
“A self-declaration has been sought regarding the nature of present operations in China or Pakistan, if any," a person in the know told the publication. This comes on the heels of the Department for Promotion of Industry and Internal Trade (DPIIT) notifying changes to the foreign direct investment (FDI) norms in April last year. The notification said that the Centre must approve any FDI inflows from countries with which India shares a border.
“This (information on links with China or Pakistan) is required for security clearance," a source told the publication. Bidders submitted their expressions of interest to buy 26% stake in BEML by the March 22 deadline. The Centre owns a 54% stake in BEML and sought bids to buy stake and transfer control of management.
“Multiple EoIs received for the privatization of BEML. The transaction will now move to the second stage," Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey said in a tweet on March 22.
Privatisation of BEML is a bid by the Centre to raise funds through selling assets. In FY21, the Centre received Rs 32,835 crore through offers for sale, three IPOs and buybacks and the govt hopes to garner Rs 1,75,000 crore from proceeds arising out of divestment.