All precautions are being taken in disinvestment of PSUs: Centre

All precautions are being taken in disinvestment of PSUs: Centre

In PSU – BEML, the government holds 54.03% stake; plans to disinvest 26%

New Delhi: Government on Monday defended in Rajya Sabha its plan to disinvest 26 per cent of its stake in public-sector BEML and asserted that all precautions are being taken so that there are no question marks on national security.

The government has a shareholding of 54.03 per cent in the PSU Bharat Earth Movers Limited (BEML) which is involved in defence, rail and mining sectors.

Allaying fears expressed by members during the Question Hour, Defence Minister Rajnath Singh said all aspects of strategic sale are taken into account before disinvesting in a PSU company.

He said it has been the policy of all governments as well as recommendation of the Niti Aayog on strategic sale of assets in public sector undertakings.

"If strategic disinvestment is being done, all precautions are being taken so that there is no question mark on our national security.

We are taking all precautions and national security is foremost for our government," the minister told Rajya Sabha.

He said BEML has businesses in several segments and the defence segment has only 16.16 per cent, while its rail and network business comprise 31.12 per cent of its total business and mining and construction is 52.27 per cent.

"It is not that defence work is being done in 100 per cent of the total work done by the company," he said, adding that a committee decides on the disinvestment.

The Government has not deferred the privatisation of BEML, the minister said in written reply to a query.

"The Government had given 'in-principle' approval for strategic disinvestment of BEML Ltd to the extent of 26 per cent out of the Government shareholding of 54.03 per cent with transfer of management control to strategic buyer," Singh said.

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