Government asks bidders for BEML to disclose business ties with China, Pakistan: Report
According to the guidelines, FDI from entities based in countries sharing a land border with India is permitted only through government approval, and not the automatic route.
April 05, 2021 / 02:13 PM IST
BEML (Image: Twitter/@cmdbeml)
Entities interested in bidding for state-run defence equipment manufacturer BEML are required to disclose business ties with China and Pakistan.
The central government has implemented this measure due to the strategic nature of BEML's operations, which includes the production of Prithvi launch missiles, Mint reported.
"A self-declaration has been sought regarding the nature of present operations in China or Pakistan, if any," a source told the publication.
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Moneycontrol could not independently verify the story.
The government has put a 26 percent stake in BEML on the block, and the last date for submitting bids was March 22. The government currently owns a 54 percent holding in BEML.
A spokesperson for SBI Capital Markets declined to comment when contacted by Mint. Spokespersons for the Finance Ministry and the Department of Investment and Public Asset Management (DIPAM) had not yet responded.
SBI Capital Markets is the transaction adviser for the BEML stake sale, the report said.
"This (information on links with China or Pakistan) is required for security clearance," another source told the paper.
According to the guidelines, foreign direct investment (FDI) from entities based in countries sharing a land border with India is permitted only through government approval, and not the automatic route.
The Department for Promotion of Industry and Internal Trade (DPIIT) had notified the revised norms in April 2020.
"Multiple Expressions of Interest received for the privatisation of BEML. The transaction will now move to the second stage," DIPAM secretary Tuhin Kanta Pandey tweeted on March 22.