Report by KEC correspondent
BEML is being sold at a fraction of its value. The Bengaluru unit has 110 acres of prime urban land and the Mysuru unit has 200 acres. The value of land is not being considered while valuing the company instead a strategic defence equipment manufacturing company is being sold on the basis of the value of its shares at the stock market.
The ongoing protest against the government’s move to privatise Bharat Earth Movers Ltd (BEML) by disinvesting the government’s 26% shares in the profit-making mini-Ratna public sector company completed one year on 6 January 2022. It was on January 6 last year that hundreds of workers of BEML unit at Kanjikode, Kerala began their agitation against the government move by forming a BEML Action Council. The Council received support from CITU, INTUC as well as from AITUC.
The Union government had started the move to privatise BEML way back in 2016. But the opposition from political parties and the employees forced the government to abandon the move. However, the government is now going ahead with the plans to disinvest 26% out of government’s shareholding 54% and handover the control to private buyer.
BEML has earning good profits. Last year, BEML secured orders worth more than ₹10,000 crore through global tenders. BEML manufactures heavy military vehicles, rail and metro coaches, and mining and construction vehicles at its four units across at Bangalore, Kolar, Mysore and Kanjikode.
The Kanjikode unit is located on 375 acres of land leased by the State government. The unit manufactures army vehicles, passenger railway coaches, and metro coaches. It has 350 permanent employees and 150 contract workers. It has already produced 1,500-odd heavy military trucks, 300 railway coaches and 500-odd metro bogies. The unit has the capacity to produce 500 metro bogies a year.
BEML Action Council convenor SB Raju said that the company is being sold at a fraction of its value. The Bengaluru unit has 110 acres of prime urban land and the Mysuru unit has 200 acres. The value of land is not being considered while valuing the company instead a strategic defence equipment manufacturing company is being sold on the basis of the value of its shares at the stock market.
BEML Employees Association general secretary S. Gireesh also alleged that the government was trying to help some private players in the name of disinvestment. Land worth crores of rupees will come in possession of private players under the guise of disinvestment.