Govt set to divest stake in defence PSUs Garden Reach, Mishra Dhatu

Govt has 74.5 per cent stake in Garden Reach Shipbuilders, and 74 per cent in Mishra Dhatu.

The government is set to divest its shareholdings in defence PSUs, Garden Reach Shipbuilders & Engineers Ltd and Mishra Dhatu Nigam Ltd (MIDHANI).

It will also divest its shareholding in BEML Limited, said  Shripad Naik. Minister of State for Defence, on Monday.

The government has invited preliminary bids to sell its 26 per cent stake in BEML along with transfer of management control.

It has 74.5 per cent stake in Garden Reach Shipbuilders, and 74 per cent in MIDHANI.

The government is following the policy of disinvestment of minority stake without transfer of management control in priority sector including defence CPSUs to unlock value and promote public ownership, Naik said in response to a query.

Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2021-22 announced the new privatisation policy for PSUs that divides public sector enterprises into strategic and non-strategic ones.

The strategic sector includes atomic energy, space and defence; transport and telecommunications; power, petroleum, coal and other minerals; banking, insurance and financial services.

In strategic sectors, “bare minimum” presence of existing public sector commercial enterprises at holding company level will be retained under government control.

The remaining will be considered for privatisation, or merger or subsidiarisation with other public sector enterprises or closure.

Public sector enterprises in non-strategic sectors will be considered for privatisation wherever feasible or else they will be considered for closure.