The state-run Bharat Heavy Electricals Ltd (BHEL) may dodge the divestment bullet as the government considers categorising the manufacturer of rail coaches to power generation equipment as a "strategic" public sector unit, Mint has reported.
“Now that a parliamentary committee has also recommended the tag of strategic PSU for the company, there would be further thought on this," the report quoted a source as saying.
The committee recommended that BHEL be deemed strategic, which could mean no more talks of selling off government stake in the company.
The move is a nod to BHEL's role in key sectors such as renewable energy and defence, as it is crucial for India to look to bolster local production of industrial equipment across sectors.
While the government is not discussing disinvestment, BHEL was among the first companies considered for stake sale. “Once categorised as strategic, it would be completely out of the stake sale considerations," the report quoted a second source as saying.
Moneycontrol couldn’t verify the development independently.
Under the Public Sector Enterprise Policy, the government identifies central PSUs in non-strategic sectors for closure or privatisation in consultation with the administrative ministries concerned, NITI Aayog, the department of expenditure (DoE), and the department of investment and public asset management (DIPAM).
The ministry of heavy industries, DIPAM, and DoE will likely discuss the matter.
BHEL is about 63.17 percent owned by the government, while the remaining 36.83 percent shareholding held by public.
At 9.32 am, BHEL was trading at Rs 214.4 on the National Stock Exchange, up 0.16 percent from the previous close.
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