The Centre has given its approval for the transfer of central public sector undertaking Bharat Heavy Electrical Limited’s (BHEL) 51% stake in Bharat Heavy Electrical Limited-Electrical Machines Limited (BHEL-EML) in Kasaragod.
The decision is on the basis of a Cabinet decision of September 2019 to purchase the shares following the Centre’s decision to divest its shares in BHEL-EML.
Set up as a joint venture of the Central and State government in 2010, the Centre has 51% stake and the State 49% in the unit manufacturing rotating electrical machinery.
The Department of Heavy Industry (DHI), Union Ministry of Heavy Industries and Public Enterprises, has communicated the approval of competent authority for transfer of BHEL’s 51% stake to the Principal Secretary, Industries, on Tuesday.
The State has been informed that the transfer of shares will be in accordance with the terms and conditions as mentioned in the “Agreement of Sale” mutually agreed between the State and the BHEL, the general manager of the BHEL has informed the State.
The State has been asked to complete the transfer process on top-priority after executing the agreement between the State and the BHEL. It has been proposed that the State should send a signed copy of the agreement to the BHEL with details of nominees on whose names the shares are to be transferred.
Post execution of the agreement, BHEL-EML’s board meeting would be convened to approve the transfer of shares. The BHEL shall handover its share certificates along with transfer forms to facilitate the transfer process.
Upon transfer of shares, BHEL nominees on the board of the BHEL-EML will resign and the said position will be taken over by the nominees of the State government. The State has been asked to indicate its nominees on the board of the BHEL- EML so that special invitation may be extended to them to attend the board meeting.
