Lok Sabha Question No. 1470 (UNSTARRED), answered on 2023-07-28
Subject: Joint Venture Projects in Defence Sector
Ministry: DEFENCE
Asked by: D. M. Kathir Anand, Vijayakumar (alias) Vijay Vasanth

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE PRODUCTION

## LOK SABHA UNSTARRED QUESTION NO. 1470

TO BE ANSWERED ON 28 th  July, 2023

## JOINT VENTURE PROJECTS IN DEFENCE SECTOR

## 1470.  SHRI D.M. KATHIR ANAND: SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH:

Will the Minister of DEFENCE be pleased to state:

- (a)  whether the Government and private players have inked joint venture projects in defence sector, if so, the details thereof;
- (b)  the ratio of the shareholding of Government and private undertakings in the defence sector during the last five years and the current year, year-wise;
- (c)  whether the Government has liquidated its shares in Defence PSUs during the last five years, if so, the details thereof;
- (d)    the  reasons  for  the  sudden  increase  of  private/corporate  shareholdings  and  decrease  in Government holdings in Defence PSUs during the last five years; and
- (e)  the details of the private sector participation in the defence corridor projects in the country, State/ UT-wise including Tamil Nadu?

## A  N  S  W  E  R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

- (a):  The information sought is sensitive in nature and cannot be divulged on the floor of the House in the interest of national Security.
- (b):  The ratio of the shareholding of Government and private/public undertakings in DPSUs are as under:

| Defence Public Sector Undertakings (DPSUs)   | Year    |   Government Shareholding in DPSUs (in %) |   Private/Public Shareholding in DPSUs |
|----------------------------------------------|---------|-------------------------------------------|----------------------------------------|
| Hindustan Aeronautics Limited                | 2018-19 |                                     89.97 |                                  10.03 |
| Hindustan Aeronautics Limited                | 2019-20 |                                     89.97 |                                  10.03 |
| Hindustan Aeronautics Limited                | 2020-21 |                                     75.15 |                                  24.85 |
| Hindustan Aeronautics Limited                | 2021-22 |                                     75.15 |                                  24.85 |
| Hindustan Aeronautics Limited                | 2022-23 |                                     71.65 |                                  28.35 |

| Bharat Electronics Limited                   | 2018-19   |   58.83 | 41.17   |
|----------------------------------------------|-----------|---------|---------|
| Bharat Electronics Limited                   | 2019-20   |   51.14 | 48.86   |
| Bharat Electronics Limited                   | 2020-21   |   51.14 | 48.86   |
| Bharat Electronics Limited                   | 2021-22   |   51.14 | 48.86   |
| Bharat Electronics Limited                   | 2022-23   |   51.14 | 48.86   |
| Bharat Earth Movers Limited (BEML)           | 2018-19   |   54.03 | 45.97   |
| Bharat Earth Movers Limited (BEML)           | 2019-20   |   54.03 | 45.97   |
| Bharat Earth Movers Limited (BEML)           | 2020-21   |   54.03 | 45.97   |
| Bharat Earth Movers Limited (BEML)           | 2021-22   |   54.03 | 45.97   |
| Bharat Earth Movers Limited (BEML)           | 2022-23   |   54.03 | 45.97   |
| Bharat Dynamics Limited                      | 2018-19   |   87.75 | 12.25   |
| Bharat Dynamics Limited                      | 2019-20   |   87.75 | 12.25   |
| Bharat Dynamics Limited                      | 2020-21   |   74.93 | 25.07   |
| Bharat Dynamics Limited                      | 2021-22   |   74.93 | 25.07   |
| Bharat Dynamics Limited                      | 2022-23   |   74.93 | 25.07   |
| Mishra Dhatu Nigam Limited (MIDHANI)         | 2018-19   |   74    | 26      |
| Mishra Dhatu Nigam Limited (MIDHANI)         | 2019-20   |   74    | 26      |
| Mishra Dhatu Nigam Limited (MIDHANI)         | 2020-21   |   74    | 26      |
| Mishra Dhatu Nigam Limited (MIDHANI)         | 2021-22   |   74    | 26      |
| Mishra Dhatu Nigam Limited (MIDHANI)         | 2022-23   |   74    | 26      |
| Mazagon Dock Shipbuilders Limited            | 2018-19   |  100    | -       |
| Mazagon Dock Shipbuilders Limited            | 2019-20   |  100    | -       |
| Mazagon Dock Shipbuilders Limited            | 2020-21   |   84.83 | 15.17   |
| Mazagon Dock Shipbuilders Limited            | 2021-22   |   84.83 | 15.17   |
| Mazagon Dock Shipbuilders Limited            | 2022-23   |   84.83 | 15.17   |
| Garden Reach Shipbuilders& Engineers Limited | 2018-19   |   74.5  | 25.5    |
| Garden Reach Shipbuilders& Engineers Limited | 2019-20   |   74.5  | 25.5    |
| Garden Reach Shipbuilders& Engineers Limited | 2020-21   |   74.5  | 25.5    |
| Garden Reach Shipbuilders& Engineers Limited | 2021-22   |   74.5  | 25.5    |
| Garden Reach Shipbuilders& Engineers Limited | 2022-23   |   74.5  | 25.5    |

| Goa Shipyard Limited       | 2018-19                                                        | 51.09                                                          | 48.91*                                                         |
|----------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
| Goa Shipyard Limited       | 2019-20                                                        | 51.09                                                          | 48.91*                                                         |
| Goa Shipyard Limited       | 2020-21                                                        | 51.09                                                          | 48.91*                                                         |
| Goa Shipyard Limited       | 2021-22                                                        | 51.09                                                          | 48.91*                                                         |
| Goa Shipyard Limited       | 2022-23                                                        | 51.09                                                          | 48.91*                                                         |
|                            | *47.21% shareholding is with Mazagon Dock Shipbuilders Limited | *47.21% shareholding is with Mazagon Dock Shipbuilders Limited | *47.21% shareholding is with Mazagon Dock Shipbuilders Limited |
| Hindustan Shipyard Limited | 2018-19                                                        | 100                                                            | -                                                              |
| Hindustan Shipyard Limited | 2019-20                                                        | 100                                                            | -                                                              |
| Hindustan Shipyard Limited | 2020-21                                                        | 100                                                            | -                                                              |
| Hindustan Shipyard Limited | 2021-22                                                        | 100                                                            | -                                                              |
| Hindustan Shipyard Limited | 2022-23                                                        | 100                                                            | -                                                              |

In addition to above, 7 New Defence Public Sector Undertakings have been incorporated on 1 st   October, 2021 as 100% Government Owned Defence Public Sector Undertakings which have been formed out of 41 erstwhile Ordnance Factories under Ordnance Factories Board. These 7 New Defence Public Sector Undertakings are  Advanced Weapons and Equipment India  Limited  (AWEIL),  Gliders  India  Limited  (GIL),  Troop  Comforts  Limited  (TCL), Armoured Vehicles Nigam Limited (AVNL), Munitions India Limited (MIL), Yantra India Limited (YIL) and India Optel Limited (IOL).

Shareholding of Government in all the DPSUs in current year is same as that of year 2022-23.

(c):  During the last five years, Government has not completely liquidated its shareholding in any  of  the  DPSUs.  However,  Government  has  reduced  shareholding  in  four  DPSUs.  i.e. Hindustan  Aeronautics  Limited,  Bharat  Electronics  Limited,  Bharat  Dynamics  Limited  and Mazagon Dock Shipbuilders Limited as per the details given in part (a) above.

(d):  Shareholding  in  DPSUs  is  primarily  reduced  to  comply  with  the  minimum  public shareholding  norms  required  under  the  provisions  of  the  securities  (Contract)  regulation Act 1956 during the financial year 2020-21 and disinvestment policy of the Government.

(e):  The information sought is sensitive in nature and cannot be divulged on the floor of the House in the interest of national Security.

*****