Centre okays demerger of core, non-core assets of BEML

The government has approved the demerger of the core and non-core assets of BEML Ltd, thus clearing a major hurdle in the state-run company's divestment.
People familiar with the development said the Department of Investment and Public Asset Management would next week discuss the date for inviting financial bids. The government expects to conclude the sale process in the current financial year.

"The demerger process of both core and non-core assets has received an in-principle approval from the MCA (Ministry of Corporate Affairs) ... Process will speed up," an official told ET.

The government is planning to sell a 26% stake in BEML. The divestment was delayed as the process of demerging the assets was taking time.

BEML is a manufacturer of equipment for segments such as mining & construction, defence & aerospace and rail and metro, and supplies products and services to clients like Coal India, Ministry of Defence and various metro rail corporations.

The Centre has set a disinvestment target of ₹65,000 crore for the current fiscal year, as it hopes to conclude the sale of BEML and Shipping Corporation of India by the end of March 2023.