DIPAM, NITI Aayog agree to proposal of incorporating BEML subsidiary

New Delhi, Jun 12 (PTI): BEML Ltd on Saturday said DIPAM and NITI Aayog have agreed to the proposal of incorporation of a wholly-owned arm for demerger of surplus land and asset as part of BEML’s strategic disinvestment process.
“Ministry of Defence…conveyed that Department of Investment and Public Asset Management (DIPAM) and NITI Aayog have concurred to the proposal of incorporation of wholly-owned subsidiary of BEML for demerger of surplus land and asset as part of BEML’s strategic disinvestment process undertaken by Government of India,” BEML said in a regulatory filing.
BEML, formerly Bharat Earth Movers Ltd, was established in May 1964 as a Public Sector Undertaking for manufacture of rail coaches and spare parts and mining equipment at its Bangalore complex.
The company has partially disinvested and presently the government owns 54 per cent of total equity and rest 46 per cent is held by public, financial institutions, foreign institutional investors, banks and employees. BEML serves the country’s core sectors like defence, rail, power, mining and infrastructure.
Earlier, Defence Public Sector Undertaking
BEML Limited recorded its highest ever turnover of Rs 3,557 crore for 2020-21 against the previous financial year’s figure of Rs 3,029, a 17 per cent growth.
In spite of major disruption and slowdown of economic activities caused by the outbreak of COVID-19 pandemic, the Bengaluru-headquartered company said it has been able to perform creditably.
The company’s Profit Before Tax stood at Rs 93 crore, a jump of 285 per cent compared to last year, it said in a statement.
“It is creditable for Team BEML to achieve this highest ever turnover in spite of tough conditions and we were able to meet our customers requirements amidst lockdown last year. Significantly, we won majority of the orders against stiff global competition,” said BEML CMD, M V Rajasekhar.