9-Aug-2021: Shareholding of Defence Related PSUs

There are 9 Public Sector Undertakings (PSUs) making defence-related equipment under Department of Defence Production, Ministry of Defence as per following details:

• Hindustan Aeronautics Limited (HAL)
• Bharat Electronics Limited (BEL)
• BEML Limited (BEML)
• Bharat Dynamics Limited (BDL)
• Mishra Dhatu Nigam Limited (MIDHANI)
• Mazagon Dock Shipbuilders Limited (MDL)
• Garden Reach Shipbuilders & Engineers Limited (GRSE)
• Goa Shipyard Limited (GSL)
• Hindustan Shipyard Limited (HSL)

The details of Defence PSUs making defence-related goods in which Government has already decreased its shareholding in the last three years, are as follows:-

Disinvestment in Defence PSUs is done to bring in financial autonomy, facilitate people’s ownership and improve their efficiency through accountability towards its stake holders. It also provides an opportunity to the citizens to participate in the wealth and prosperity of these organisations.

To meet the challenges in Defence sector, including the emergencies, the Government has taken multi-pronged actions for Indigenisation and manufacturing of Defence items within the country. Two (02) Positive lists (erstwhile Negative list) of Indigenisation comprising of 209 items have been notified for placing these items under import embargo with specified timelines.  Further, Defence PSUs under Department of Defence Production have modernized their infrastructure, created new capacities and have developed a robust supply chain in the form of extensive vendor base to ensure production of defence equipment.  Additionally, to enhance functional autonomy, efficiency, unleash new growth potential and innovation in Ordnance Factories, Government has approved corporatisation of Ordnance Factory Board into 7 Defence PSUs. Besides this, there are 9 DPSUs including shipyards & 542 Defence licensees in the private sector which contribute to the Defence production within the country to meet emergency requirements.

26-Jul-2021: Privatisation of Defence Establishments

There is no proposal of privatization of Defence Public Sector Undertakings (DPSUs) and Ordnance Factory Board (OFB) under the administrative control of Department of Defence Production.  However, to enhance functional autonomy, efficiency and unleash new growth potential and innovation in Ordnance Factories, the Cabinet Committee on Security (CCS) in its meeting held on 16.06.2021, has approved to convert the production units of OFB into 07 DPSUs.

15-Mar-2021: Privatisation of Defence PSUs

The Government is planning to decrease shareholding in Defence Public Sector Undertakings (DPSUs) namely, BEML Ltd., Garden Reach Shipbuilders & Engineers Limited (GRSE) and Mishra Dhatu Nigam Limited (MIDHANI).  The completion of a transaction depends on market conditions.  Therefore, it is not possible to predict a timeline. 

Details of PSUs making defence-related equipment in which Government has already decreased its shareholding and funds collected by decrease in shareholding through each one of the PSUs in last five year:-

Policy of disinvestment of minority stake without transfer of management control is being followed for priority sector including defence to unlock value, promote public ownership, to meet the minimum public shareholding norms of SEBI and for ensuring higher degree of accountability.