Divestment plan back on track; BEML, ITDC next on agenda

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26 Aug, 2025 12:21

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After a brief coronavirus-induced pause, the government’s disinvestment process is coming back online. Over the next few weeks, the department of investment and public asset management (DIPAM) will take forward the process of strategic sale of several public sector undertakings (PSUs) including BEML, India Tourism Development Corporation (ITDC) and Central Electricity Corporation, sources said.

The core group of secretaries on disinvestment (CGD) is to meet on December 28 to finalise the sale of defence PSU BEML, formerly Bharat Earth Movers Ltd, sources said.

During the meeting to be held under the chairmanship of the cabinet secretary, preliminary information memorandum (PIM) and expression of interest (EoI) to invite bids are likely to be finalised.

The cabinet has already approved the strategic sale of BEML by divesting 26 percent of the government stake. At present, the government holds 54.03 percent in the defence public sector undertaking.

Also read: Air India divestment: Intimation date for qualified interested bidders extended to January 5

After getting approval from the alternate mechanism (group of ministers), an expression of interest will be issued.

Another meeting is planned for December 30 during which the sale of ITDC-owned The Ashok hotel in New Delhi will be taken up. The interministerial group (IMG) will finalise the modalities of sale.

Similarly, the strategic sale of Central Electronics Ltd, which has been approved by the cabinet, is also on cards. Looking to garner revenue, the government has already invited bids for Bharat Petroleum CorporationLimited (BPCL), Air India and the Shipping Corporation of India.

Though it's getting difficult to complete the process of divestment of these companies in the current financial year, the government is moving ahead so that by the first quarter of the next financial year, substantial receipts can be generated.

DIPAM, the nodal department for divestment, has so far raised Rs 26,364.53 crore. Of this, Rs 12,666.94 crore has come from disinvestment, Rs 13,696.59 from dividend and Rs 10,992 crore from Bond ETF.