Shareholding of Defence Related PSUs

There are nine 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 the defence sector, including the emergencies, the Government has taken multi-pronged actions for Indigenisation and manufacturing of defence items within the country. Two (2) 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 modernised 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 nine DPSUs including shipyards and 542 defence licensees in the private sector which contribute to the defence production within the country to meet emergency requirements.