Strategic disinvestment of 26% equity shares in Bharat Earth Movers Limited
The Government of India, Ministry of Defence, in a press release has communicated that an in-principal approval of the Cabinet Committee on Economic Affairs ("CCEA"), for strategic disinvestment of 26% equity shares in Bharat Earth Movers Limited ("BEML"), an Indian Public Sector Undertaking.
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.
BEML, under the administrative control of Ministry of Defence, provides equipment support to Indian Army and other defence forces by manufacturing variants of Tatra vehicle for all terrain operation.
The government currently holds 54.03% stake in BEML, it is proposed that the said shareholding would be sold to the strategic buyers to be identified by the government of India by following due procedure.
An evaluation committee will be appointed which will also have representation from the administrative ministry will arrive at a valuation, invite bids and recommend a reserve price.
The core group of secretaries on disinvestment, which is headed by cabinet secretary, will be meeting to finalise the terms and conditions of the sale, including price. Thereafter, the terms and conditions of will be sent to CCEA for final approval.
Cabinet Committee on Economic Affairs approves disinvestment in Pawan Hans
The Cabinet Committee on Economic Affairs (CCEA) at its meeting held on October 27, 2016 gave in-principle approval for strategic disinvestment of central public sector enterprises (CPSES) including Pawan Hans Helicopters Ltd.
CCEA has approved the recommendation for selling the entire government stake to a strategic buyer identified through a two-stage auction process. The decision was taken based on the recommendations of the core group of secretaries on disinvestment.
Pawan Hans was incorporated in the year 1985 with the primary objective of providing helicopter support services to the oil sector for its off-shore exploration operations, services in remote and hilly areas and charter services for promotion of tourism. At present, the Government owns 51% stake and Oil and Natural Gas Corporation owns the rest.
Transfer of pending Defence Industrial License applications from the Department of Industrial Policy and Promotion, Ministry of Corporate Affairs to the Ministry of Home Affairs
As per the office memorandum dated December 6, 2016, issued by the Department of Industrial Policy and Promotion, Ministry of Corporate Affairs ("DIPP"), it has transferred 90 pending industrial license applications for grant of license in the defence sector to the Ministry of Home Affairs (Arms Division) ("MHA").
As per the office memorandum, a licensing committee has been constituted by MHA to review and process the applications for manufacture of arms and ammunitions for the new manufacturers and for all matters related to existing manufacturers including the application of capacity revision by general or special order under the Arms Rules, 2016.
Change in Competent Authority for disposal of requests by vendors for allowing period of discharge
As per a recent office memorandum issued by the Department of Defence Production, Ministry of Defence, the Secretary, Defence production has been appointed as the competent authority for disposal of requests by vendors for allowing period of discharge as per Para 5.2 of Revised Offset Guidelines 2012, Appendix – D to Defence procurement Procedure, 2013 and 2016. The said office memorandum further clarifies that all disposal shall be based on the recommendations of Collegiate Committee Mechanism on Defence Offsets.
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