Lok Sabha Question No. 2856 (UNSTARRED), answered on 2023-03-17
Subject: Shareholding of Government and Private Undertakings in Defence Sector
Ministry: DEFENCE
Asked by: D.K. Suresh

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE PRODUCTION

## LOK SABHA UNSTARRED QUESTION NO. 2856

TO BE ANSWERED ON 17 th  March, 2023

## SHAREHOLDING OF GOVERNMENT AND PRIVATE UNDERTAKINGS IN DEFENCE SECTOR

2856.  SHRI D.K. SURESH:

Will the Minister of DEFENCE be pleased to state:

- (a)  the ratio of shareholding of Government and private undertakings in the defence sector during the last three years and the current year, year-wise;
- (b)  whether Government shareholding in certain PSUs has come down during the last five years;
- (c)  if so, the details thereof;
- (d)  whether there is any specific reason for increase in the private/corporate shareholding and decrease in Government holdings in PSUs; and
- (e) if so, the details thereof?

## A  N  S  W  E  R

MINISTER OF STATE

(SHRI AJAY BHATT)

IN THE MINISTRY OF DEFENCE

(a):  The ratios of shareholding of Government and private undertaking in the Defence Public Sector  Undertakings  (DPSUs)  during  the  last  three  years  and  the  current  year  are  given below: -

HAL:  Govt.  89.97%,  Public/Private  10.03%in  2019-20;  Govt.  75.15%,  Public/Private 24.85% during 2020-21 to 2022-23.

BDL: Govt. 87.75%, Public/Private 12.25% in 2019-20;  and Govt.  74.93%, Public/Private 25.07% during 2020-21 to 2022-23.

BEL: Govt. 51.14%, Public/Private 48.86% during 2019-20 to 2022-23.

BEML: Govt. 54.03% and Public/Private 45.97% during 2019-20 to 2022 - 2023.

MIDHANI: Govt. 74% andPublic/Private26% during 2019-20 to 2022-23.

MDL:  Govt.  100%  in  2019-20;  Govt.  84.83%,  Public/Private15.17%  during  2020-21 to 2022-23.

GRSE: Govt. 74.5%, Public/Private 25.5% during 2019-20 to 2022-23.

GSL: Govt. 51.09%, Mazagon Dock Shipbuilders Ltd 47.21%, Bodies Corporate (including foreign corporate bodies 1.18%, Other Shareholders (includes NRI, Trust, IEPF and General Public) 0.52%  during 2019 -2020 to 2022-23.

Other DPSUs viz HSL and new 7 DPSUs i.e. MIL, AVNL, AWEIL, YIL, IOL, TCL and GIL are wholly owned by Government of India and Govt. share in these DPSUs is 100%.

(b)&  (c):    Government  of  India's  shareholding  during  the  last  five  years  came  down  in HAL, BDL, BEL, MDL, MIDHANI and GRSE. Details are as under:

HAL: Government Shareholding reduced from 89.97% in 2019-20 to75.15%in 2020-21.

BDL: Government shareholding reduced from 87.75% in 2019-20 to 74.93 % in 2020-21.

BEL: Government Shareholding reduced from 58.83% in 2018-19 to 51.14% in 2019-20.

[

MDL: Government shareholding reduced from 100% in 2019-20 to 84.83% in 2020-21.

MIDHANI: Government Shareholding reduced from 100% to 74% in 2017-18.

GRSE: Government of India's shareholding  reduced from 100% in 2017-18 to 74.5% in 2018-19.

Govt. shareholding has not come down in other DPSUs during the last five years.

(d) & (e): Government shareholding in DPSUs is decreased to comply with the minimum Public/Private shareholding norms required under the provisions of the Securities (Contract) Regulation Act 1956 and disinvestment policy of the Government.

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