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Disinvestment in BEML

Discussion in 'Indian Defence Industry' started by Ankit Kumar 001, Jul 21, 2017.

  1. Ankit Kumar 001

    Ankit Kumar 001 Major Technical Analyst

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  2. Anish

    Anish BANNED BANNED

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    Govt. has finally started the process.

    HAL is going up.
    BEML is going up.

    In future the DRDO can evolve into an equivalent of DARPA and private corps such as DRAL, Tata-Lockheed and others will be main players.
     
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  3. Abingdonboy

    Abingdonboy Major Technical Analyst

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    Wow, GoI is going to dilute its holdings down to just 26% in one go?
     
  4. Anish

    Anish BANNED BANNED

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    I think its a sale of 26% with the govt. currently keeping remaining 74%
     
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  5. Abingdonboy

    Abingdonboy Major Technical Analyst

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    Oh right, yes that makes much more sense and I would prefer if the GoI kept control of a strategic entity like BEML.

    But it also says the management control will be transfered to the strategic buyer.
     
  6. Anish

    Anish BANNED BANNED

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    BEML is a corporate entitity.

    It is not 100% management handover just a particular number of seats on the board and corresponding voting rights.

    Govt. disinvestment in Air India, HAL, BEML points to the future where even defence gets privatised like in the US.

    I add Air India as that takes a ton of political capital.
     
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  7. Abingdonboy

    Abingdonboy Major Technical Analyst

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    Yes, the model you have mentioed (DRDO in a DARPA role with private sector working closely with them and on their own R&D efforts) is what I have been saying India should try and emulate for years. However, it is a LONG way to go to get there and the Indian private sector really needs to step up their R&D efforts, across the board Indian corporations are incredibly risk-adverse and undertake very very little in-house development and as such there is little innovation in India. This has to change otherwise these disinvestments are not going to acheive their desired goals.
     
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  8. Anish

    Anish BANNED BANNED

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    :azn:
    As of 2017 we are firmly headed in that direction.

    Govt disinvestment in DPSU's has started.

    Private players in defence are multiplying and More importantly the money has gone into the billions.

    It will take a few decades but I have no doubt we will achieve the desired goals.

    And as far as Indian non-risk taking mentality is concerned when the domestic defence pie is $100-200 billion + guaranteed export to Sri Lanka, Nepal, Bhutan and other allies I don't see why any big player will want hands off.

    If today Tejas was successful and IAF had deployed 10 + squadrons we would easily be exporting it to a dozen nations and negotiating with 3 dozen more.

    After all what do countries like Uganda want with Su-30 ? It's all about delivering kickbacks to the buyer's. And who is better in kickbacks than India ? :azn:
     
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  9. Ankit Kumar 001

    Ankit Kumar 001 Major Technical Analyst

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    Air India and its subsidiaries has a total debt of almost 50k crore. That's huge.

    And important taxpayer money is going into things like these.
     

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