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No plans to privatise BEML: Karnataka
Nirani was responding to a specific question by Govindaraju, the Janata Dal (Secular) or JD(S) legislator in the upper house of the state legislature in the ongoing budget session.
The Karnataka government on Tuesday said that there were no plans to privatise Bharat Earth Movers Limited (BEML) in Kolar, about 60 kms from Bengaluru, trying to ward off allegations of divesting published sector units in the state.
“Khata (deed) for 12500 acres in BEML’s 16000-acre land was done. The Centre has agreed to hand over 3500 acres to the state government for industrial purposes. We have conducted another drone survey and this report will be submitted to the Union Minister. I will hold talks with Union Mines Minister in Delhi on March 10 and take the next decision”, Murugesh Nirani, Karnataka’s minister for large and medium industries, said in a statement on Tuesday.
Nirani was responding to a specific question by Govindaraju, the Janata Dal (Secular) or JD(S) legislator in the upper house of the state legislature in the ongoing budget session.
The indication that BEML, one of Bengaluru’s oldest public sector enterprises, was going to be privatised had raised a storm with activists blaming the Bharatiya Janata Party (BJP) led government at the state and Centre of privatising public sector units.
Nirani said that BEML is under the Centre’s control and nobody should pay heed to rumours.
“BEML has 1149 acres of land. Earlier, 979 acres were allotted for industrial area development, but the land was not utilised, which will be taken back to set up industries. The Centre’s economic affairs department has decided against the closure of the factory. The state must adhere to the rules since it comes under the central government,” the minister said.
“Centre’s parliamentary committee on economic affairs has decided to withdraw stakes from government-owned factories so it will be withdrawn in a phased manner. The 47% stake in BEML will remain, Nirani stated.
The Basavaraj Bommai-led government has also proposed to build townships in Karnataka to attract more investments that would lead to more employment. Karnataka has been under severe financial constraints on account of the Covid- 19 pandemic-induced lockdowns, reduction of the state’s share in central taxes as well as the general slowdown in the economy.
Nirani said that efforts were being pursued to promote industries in Tier-II cities.
“Government has reduced providing sops for industries in Bengaluru and Bengaluru rural district to promote industries in tier 2 cities such as Tumakuru, Kalaburagi and Belagavi. The government will extend all the help and give concessions to those who make investments in these cities’ ‘ the minister said.
Nirani also said that there were plans to allow the building of satellite townships near such industries to promote the “walk to work” concept.
