Title: Regarding disinvestment of BEML.

HON. DEPUTY-SPEAKER: The House will now take up `Zero Hour’.

          Shri K. H. Muniyappa.

SHRI K.H. MUNIYAPPA (KOLAR): Mr. Deputy-Speaker, Sir, I would like to raise the issue of disinvestment of M/s BEML in my constituency in Bengaluru, Palakkad and Mysore. The process of disinvestment of BEML was started during the time of the last Government. During that period a delegation from BEML under my leadership along with the Trade Union leaders of BEML and leaders belonging to the Scheduled Castes and Scheduled Tribes met and discussed the subject with the then hon. Defence Minister, Shri A.K. Antony ji. After a prolonged discussion, the hon. Minister assured that BEML will not be disinvested beyond 49 per cent in toto, Government will hold 51 per cent shares and will have full control over the administration of BEML.

          In this context, I met former Defence Minister, Shri Manohar Parrikar ji along with Shri Ananth Kumar ji, the hon. Minister of Parliamentary Affairs and a delegation of BEML employees’ union leaders of these three units. During the discussion the then Defence Minister also assured that BEML will not be disinvested since the company is continuously making profits and also it comes under the Ministry of Defence. 

          Now the present Government has announced the strategic sale of 26 per cent of its share in addition to 46 per cent which has already been sold. In that case the Government will lose its control over the administration of BEML and the company will go in private hands. It is understood that the hon. Minister has replied in the Parliament that the assets of BEML is around only Rs. 500 crore which is not correct, rather the approximate value of the company is around Rs. 65000 crore in these three units.

          In KGF the BEML has come into existence as an alternative industry to the closed Bharat Gold Mines Limited. This is the only Public Sector Company in the whole district. It is a reserved constituency. The total number of employees of BEML is around 9000 and above and all these people are working very hard. Since its inception 52 years ago, except for one year, the company has made a profit. Once upon a time this company was a Navaratna company. Employees of the company are sitting on a dharna for two days, that is, on the 9th and 10th August at Jantar Mantar.

          The company has stake in three very vital areas, namely, mining and construction, Defence business and Rail and metro. The company has helped in the development of infrastructure of the country. The company has indigenised all the equipment and caters to the needs of Coal India and construction companies, bridge construction etc. The company has manufactured world class coaches, wagons and metro coaches for Indian Railways and metro rail. Many equipment are used in Defence, vehicles, Armed Recovery vehicles, missile launchers, battle tanks, hauls, mine plough, snow cutters, aircraft towing tractors etc. BEML has paid a dividend of around Rs. 900 crore to the Government exchequer. BEML has contributed around Rs. 6500 crore directly and indirectly in the form of tax to the Government.

          Under the circumstances, this Public Sector has earned a profit right from its inception except for one year. Therefore, I would like to urge upon the Government that since it was decided in the last Cabinet that BEML will not be disinvested and keeping the interest of the country in view and also since its involved in Defence equipment production, this company should not be disinvested. I would like to request the Government to protect this industry and should not be disinvested.

HON. DEPUTY-SPEAKER: Shri S.P. Muddahanume Gowda, Shri Mullappally Ramchandran, Adv. Joice George, Shrimati P.K. Sreemathi Teacher, Shri M. B. Rajesh, Dr. A. Sampath are permitted to associate with the issue raised by Shri K.H. Muniyappa. 





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