Ministry of Defence
21-July, 2017 15:07 IST
Disinvestment of BEML
The Government has given ‘in-principle’ approval for strategic disinvestment of BEML Ltd to the extent of 26% of Government shareholding with transfer of management control to strategic buyer. Transaction Advisor, Legal Advisor and Asset Valuer have been appointed by the Government as per the procedure and mechanism laid down for this purpose. After completion of the process, specific approval of Government will be sought again. The amount to be mobilised through the sale of Government Equities in BEML can be known only after completion of the process.
The details are given below:-
Breakup of extent of land and other assets of BEML Ltd as on 31.03.2017:
(Rs. in Crore)
Particulars-Gross carrying value-Accumulated Depreciation-Net carrying value
(i)LAND (total 4191.56 acres)
Free Hold ( 2696.63 acres )12.86 - 12.86
Lease Hold ( 1494.93 acres )80.39-0.65-79.74
(ii)OTHER ASSETS
Buildings-151.35-14.65-136.70
Plant and Equipment-272.41-43.38-229.03
Furniture and Fixtures-4.74-2.08-2.67
Vehicles
Given on lease-4.26-1.06-3.20
Own use-5.25-1.22-4.03
Office Equipment-2.27-1.16-1.11
Road and Drains-15.33-6.12-9.21
Water Supply Installations-2.38-0.09-2.29
Railway Sidings- 8.69-1.99-6.70
Electrical Installation-18.06-4.36-13.70
Jigs and Fixtures-15.63-6.28-9.34
Special Tools-10.22-5.25-4.97
Computers and Data processing units-10.00-7.12-2.88
Total-613.86-95.42-518.44
The details are given below:-
Details of Profits made, Dividend and taxes paid to the Government during the last ten years:
(Rs. In Crore)
Year
Profit After Tax (PAT)
Dividend
(Govt. Share)
Contribution to exchequer (taxes)
2007-08
225.65
27.00
595.63
2008-09
268.84
27.00
580.34
2009-10
222.85
22.50
688.25
2010-11
149.76
22.50
657.92
2011-12
57.25
11.25
682.58
2012-13
(79.87)
5.63
628.76
2013-14
4.68
2.25
653.67
2014-15
6.76
2.25
557.65
2015-16
53.15
9.00
671.63
2016-17
72.55
18.00
693.46
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri M.B. Rajesh and others in Lok Sabha today.
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The stake sale may fetch the exchequer more than &1,000 crore. File photo | Photo Credit:
K. K. Mustafah
http://www.thehindu.com/business/In...26-strategic-sale-in-BEML/article17000613.ece
Established in May 1964, BEML operates on three major business verticals for associated equipment manufacturing — mining and construction, rail and metro and defence and aerospace. Its turnover has risen to more than ₹3,500 crore.
The PSU, under the administrative control of defence ministry, provides equipment support to Indian Army and other defence forces by manufacturing variants of Tatra vehicle for all terrain operation.
It also supports the aerospace operations by supplying ground support equipment such as Aircraft Towing Tractor, Multi Purpose Weapon Loader and Crash Fire Tender.
The government is targeting ₹56,500 crore in disinvestment proceeds this fiscal. Of this, ₹36,000 crore is to come from minority stake sale in PSUs and another ₹20,500 crore from strategic stake sale. — PTI
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The strategic sale approval is just the third in over 12 years.
In September, the Cabinet had cleared strategic sale of Bharat Pumps and Compressors Ltd., while in December it had approved sale of India’s first pharma company Bengal Chemicals and Pharmaceuticals Ltd as well as Hindustan Antibiotics Ltd.
These PSUs will be the first privatisation since sale of Jessop and Co in 2003-04 under the NDA government headed by Prime Minister Atal Bihari Vajpayee.
Ministry of Defence
21-July, 2017 15:04 IST
Defence Purchases
Capital Acquisition of defence equipment is undertaken as a continuous activity in accordance with the Defence Procurement Procedure (DPP) to keep the Armed Forces in a state of preparedness to meet the entire spectrum of security challenges. DPP-2016, which was promulgated with effect from 1st April 2016, contains provisions for reducing the timelines for completion of procurement activities. All efforts are made to optimally use budgeted funds for meeting committed liabilities relating to already concluded capital acquisition contracts and for new schemes contracted during the year. The capital Budget and Expenditure for Armed Forces for the last three years are given below:
(Rs. in crore)
Year
Revised Estimate
Expenditure
2014-15
66151.73
65862.38
2015-16
65400.00
62235.54
2016-17
62619.36
68252.87
The proposal for a non-lapsable Defence Modernisation Fund has not been agreed to by Ministry of Finance.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shrimati K. Maragatham in Lok Sabha today.
Ministry of Defence
21-July, 2017 15:03 IST
Defence Innovation Organisation
The Government has approved a Scheme of Defence Innovation Fund (DIF), aimed at creating an eco-system to foster innovation and technology development in defence by engaging R&D institutes, academia, industry including MSMEs, start-ups and even individual innovators and provide them award based grant/ funding to carry out innovative development, which has good potential for future commercialization. The Scheme is proposed to be implemented through a ‘not for profit’ company under section 8 of the Companies Act, namely Defence Innovation Organisation (DIO). DIO has been registered with Bengaluru as its headquarter.
The DIO would be funded by two Defence Public Sector Undertakings (DPSUs), namely Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL).
The maximum corpus fund raised by HAL and BEL for DIO shall be Rs. 100 crore, Rs. 50 crore each from HAL and BEL. To start with, HAL and BEL will contribute Rs. 5 crore each. Subsequently, public or private entities, which are ‘not for profit’ organisations and are ready to promote and fund innovation programmes of this nature, would be invited to join the organisation.
This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Prof. Richard Hay and others in Lok Sabha today.