BEML Ltd on Saturday said Dipam and NITI Aayog have agreed to the proposal of incorporation of a wholly owned arm for the demerger of surplus land and asset as part of BEML’s strategic divestment process.

BEML, formerly Bharat Earth Movers Ltd, was set up in May 1964 as a public sector undertaking to manufacture rail coaches and spare parts and mining equipment at its Bangalore complex.

The company has been partially divested and, at present, the government owns 54 per cent of the total equity and the rest 46 per cent is held by the public, financial institutions, foreign institutional investors, banks and employees.