New Delhi: As a second wave of COVID-19 infections hits several countries across the globe and states within India, the government has extended the last date for submission of Expression of Interest (EoI) for privatisation of defence PSU BEML Limited. In a notification released on Friday, the Department of Investment and Public Asset Management (DIPAM) said that the last day for submission of EoIs has been extended from March 1 to March 22. It added that the last date for the submission of physical copies of EoIs by interested bidders who have submitted bids online has been extended from March 16 to April 6.
"Based on requests from potential bidders, due to the restrictions imposed by several countries in light of the COVID-19 pandemic and the consequent logistical challenges faced by Interested Bidders, the following changes are made in the PIM," said DIPAM before listing the new dates.
On January 4, the government had invited initial bids from private firms for the sale of 26 percent stake, along with management control, in the defence and engineering public sector undertaking BEML Ltd. The government has appointed SBI Capital Markets Limited as its transaction adviser for the proposed divestment of the BEML stake. Currently, the government holds 54.03 percent stake in the defence PSU. The proposal for the strategic disinvestment of 26 percent share in BEML had received a nod from the Cabinet Committee on Economic Affairs in October 2016.
BEML Limited, formerly known as Bharat Earth Movers Limited, was established in May 1964 as a PSU for the manufacture of Rail Coaches & Spare Parts and Mining Equipment at its Bangalore Complex. The company has partially disinvested and presently the government owns 54 percent of total equity and rest 46 percent is held by Public, Financial Institutions, Foreign Institutional Investors, Banks and BEML Employees. BEML plays a pivotal role in serving India's core sectors like defence, rail, power, mining and infrastructure. The company started with a modest turnover of Rs 5 crore in1965 and the total turnover of the company is now more than Rs 3,500 crore.
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