The Centre may sell its stake in Bharat Heavy Electricals Ltd (BHEL), Mint reported citing unnamed sources. This is in line with Finance Minister Nirmala Sitharaman's policy to divest in non-strategic and strategic sectors,
Two other Public Sector Undertakings (PSUs) MECON Ltd and Andrew Yule and Co Ltd may be on the same path of government divestment strategy, reported the publication.
Moneycontrol could not independently verify the report.
The department of investment and public asset management (DIPAM) received a report from SBI Capital Markets Ltd for a divestment proposal on BHEL, according to a report by Mint. SBI Capital Markets Ltd is serving as an advisor for the stake sale for the three PSUs.
The government is vying to achieve the target of Rs 1.75 lakh crore as its divestment target for FY 2022 to raise funds. In the Union Budget 2021-22, FM Sitharaman announced the 'strategic sector' policy had been approved by the government.
"The policy provides a clear roadmap for disinvestment in all nonstrategic and strategic sectors. We have kept four areas that are strategic where bare minimum CPSEs will be maintained and rest privatised. In the remaining sectors all CPSEs will be privatised," she said.
BHEL is India's largest power generation equipment manufacturer that works in areas including coal, hydro, nuclear, gas and solar energy.
“As you would be aware, the disinvestment exercise of any PSU is the prerogative of the government," a BHEL spokesperson told Mint in a mail. "Accordingly, DIPAM manages the process as mandated."
Andrew Yule and company ltd is a conglomerate involved in a variety of businesses including electrical, engineering and tea. On the other hand, MECON Ltd is involved in metal, power, oil and gas and infrastructure development.
While BHEL and Andrew Yule are under the department of heavy industry, Mecon Ltd is under the Steel Ministry.