India’s ambitious disinvestment programme has picked up pace with advisor SBI Capital Markets Ltd submitting reports on stake sales in Balmer Lawrie & Co., Mecon Ltd, Andrew Yule and Co. Ltd and Bharat Heavy Electricals Ltd (Bhel) to the department of investment and public asset management (Dipam), said two people aware of the development.
Niti Aayog, the government’s policy think-tank, along with Dipam will now decide on the way forward for divestments in these central public sector enterprises (CPSEs). While Balmer Lawrie is under the oil ministry, the department of heavy industry is the nodal ministry for both Bhel and Andrew Yule, with Mecon being under the steel ministry’s ambit.
“SBI Capital has submitted its reports on Balmer Lawrie, Mecon, Andrew Yule and Bhel. It’s for the government to decide upon the next steps,” said one of the two people cited above requesting anonymity. A spokesperson for SBI Capital Markets declined comment.
“To fast forward the disinvestment policy, I am asking Niti (Aayog) to work out on the next list of CPSEs that would be taken up for strategic disinvestment,” finance minister Nirmala Sitharaman said while presenting the Union budget last month. She had also spelt out details of a new CPSE policy, paving the way for the privatization of non-strategic state-run companies.
Queries emailed to the spokespersons of Dipam, Niti Aayog and the ministries of finance, petroleum and natural gas, steel, and heavy industries and public enterprises remained unanswered.
The government owns 59.67% of Balmer Lawrie which is present in eight businesses —travel and vacations, industrial packaging, greases and lubricants, leather chemicals, logistics, logistics infrastructure, logistics services, and refinery and oil field services. It holds a 63.17% stake in Bhel, which accounts for 53% of India’s installed power generation capacity in the conventional space. While Andrew Yule is present in diverse businesses such as tea, electrical, engineering, lubricant and printing, Mecon is present in the metals and mining space.
The divestment plans come against the backdrop of the Modi administration’s ₹1.75 trillion disinvestment playbook for the next fiscal gaining traction. Suitors have lined up for CPSEs such as Bharat Petroleum Corp. Ltd, Shipping Corp. of India, Pawan Hans Ltd, Nilachal Ispat Nigam and BEML Ltd.
The latest case in point being BEML Ltd with at least six companies comprising Tata Motors Ltd, Mahindra and Mahindra Ltd, Ashok Leyland Ltd, Bharat Forge Ltd and Megha Engineering and Infrastructure Ltd initially looking to buy a 26% stake in the state-run defence equipment maker as reported by Mint earlier. The last date of submission of interest was 22 March.
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