Ignoring protest , the centre has put on sale Mini Navaratna company, the Bharat Earth Movers Ltd(BEML) and on a petite price. The government has invited letter of Expression of Interest(EoI) from aspiring buyers before the 31st of March. The plan is to sell 26 percent of the govt-owned 56.03 share thereby transferring the ownership and management of the company to private parties. In effect, BEML worth 56,000 crore rupees will go to corporates for just Rs 720 crore.
In its first term, th Modi govt tried to cut a Rs 518 crore deal for BEML The sale plan was however abandoned following huge opposition from the company’s workers, Chief Minister Pinarayi Vijayan, and interventions made by MP Ragesh in the parliament. However, on coming to power the second time, Modi govt made its decision to sell the company in 16 phases and the current invitation of EoI is that plan set in motion.
The handover to corporates is being made ignoring workers’ protest for selling a profit-making company operating in the defence sector. BEML, that produces defence goods, is engaged in manufacture of military vehicles, rocket launcher carriers, tetra trucks and so forth required by the sector. It also manufactures tetra coaches for the mining sector - an activity viewed as challenge to the private companies.
Founded in Bengaluru in 1964, the company has recorded profits all along up to now. BEML had recently procured Rs 5000 worth contract through competitive bidding. Entrusting private parties with essential defence goods is detrimental to the country’s security, the workers’ unions point out.
The unit in Kanjikode was started on 375 acres granted by State government. Post the sale, buyers will take hold of the land as their package. Put together, BEML owns 4160 acre land across its four units at Bengaluru, Mysore, Kolbar and Kanjikode. Corporates signaling interest for the throwaway deal include Reliance, Vedanta, and Kalyani group.
