Centre to offload 17% stake in Bhel

New Delhi, Nov 27: The government will sell its 17 per cent equity in Bharat Heavy Electricals Ltd (Bhel) to bring down government holding in the company to 51 per cent from 67.7 per cent at present.
Heavy industries ministry has given concurrence to the proposal for divesting 17 per cent government equity to the public, financial institutions and employees. Heavy industries minister Manohar Joshi said that a proposal to this effect has been sent to the disinvestment department for its consideration. Asked how soon the proposal would be considered, Mr Joshi said, "Though we are open to the idea of diluting equity in Bhel even this fiscal, it looks more likely that the process will begin only next fiscal".

The ministry sources said that the government will retain management control in Bhel post sell-off. A concrete proposal detailing the percentage to be divested to the public, FIs and employees would be finalised after appointment of global advisors.

The disinvestment commission had recommended induction of financial institutions as strategic partners through disinvestment of 20 per cent of Bhel’s equity on their favour. Presently, FIIs hold 14.9 per cent, mutual funds 12.6 per cent, insurance companies three per cent and the remaining equity is with others and the public.

Mr Joshi had earlier expressed reservations on diluting government holding in Bhel below 51 per cent mark.

— PTI