Indian government plans to disinvest 10 per cent of its share from India’s only defense aircraft manufacturer, Hindustan Aeronautics (HAL) and 5 per cent from Bharat Electronics (BEL).
Indian Defense Minister of State for Defense, Inderjit Singh Rao said in a statement to the Parliament Monday that “the Government has approved disinvestment of defence sector CPSEs, 5 per cent paid-up equity of BEL out of Government of India’s shareholding of 75.02 per cent, through Offer for Sale (OFS) and 10 per cent of paid-up equity of HAL, through Initial Public Offer (IPO).”
Strategic sale of Defence Public Sector Undertakings (DPSUs) is not contemplated, the statement said.
HAL is currently handling many key projects for both the Indian Air force and Indian Navy such as development of Tejas Light Combat Aircraft , Dhruv Advanced Light Helicopters , and the indigenous production of Russian-origin Su-30MKI fighter planes.
The other projects the company is keen to handle are the indigenous production of medium multi-role combat aircraft and the fifth-generation fighter aircraft, light utility helicopters and multi-role transport aircraft.