The Centre is likely to invite expressions of interest (EoI) for the strategic disinvestment of BEML and Shipping Corporation of India (SCI) over the next few months, as it looks to speed up the privatisation of non-strategic state-run companies.
The demerger of land and non-core assets of both companies is expected to be completed by October. Separately, the government is also looking to fast-track secondary market offers of others, including National Fertilizers Ltd and Rashtriya Chemicals & Fertilizers Ltd.
The Centre expects to complete BEML’s demerger next month. The company’s board has fixed September 9 as the record date for determining the eligible shareholders for a 1:1 issue of shares of BEML Land Assets Ltd.
The government is evaluating all prospective candidates and a decision will be taken based on market conditions. The government plans to sell a 26% stake in BEML. The company’s board has already approved a demerger scheme for hiving off the non-core assets to Shipping Corporation of India Land and Assets Ltd (SCILAL). The assets include Shipping House, Mumbai, and Maritime Training Institute (MTI), Powai. The Centre is aiming to sell its entire 63.75% stake in SCI.
The government has a disinvestment target of Rs 65,000 crore for the current fiscal year. The target may be difficult to meet as the strategic sale of BPCL has been shelved. It has raised Rs 24,544 crore through disinvestment in the current financial year thus far. The government is also looking to fast-track stake sales in fertiliser companies and will offload a 10% stake in RCF and 20% in NFL.
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