Union Govt. to Separate BrahMos Thiruvananthapuram Unit

Thiruvananthapuram: The Union Government has confirmed its decision to separate the Thiruvananthapuram-based BrahMos unit, which manufactures components for the BrahMos missile system, from its parent organisation, BrahMos Aerospace Private Limited. The information was revealed in a written reply by Union Defence Minister Rajnath Singh in Parliament.

According to the Minister’s reply, the separated entity will be restructured into a new organisation with a greater shareholding by the Defence Research and Development Organisation (DRDO), a Central Public Sector Enterprise. However, the reply does not specify who will hold the remaining shares in the new setup.

The move has sparked concern among employees and state authorities, especially as the decision was taken unilaterally by the Union Government without consultations with the State Government or recognised trade unions. Earlier, there had been indications that With DRDO retaining the majority shareholding, concerns have emerged that the organisation may eventually become an autonomous entity registered under DRDO, governed by a separate Board of Directors.

Employees have also voiced apprehensions that if the ownership structure of the unit changes in the future, the existing clause granting the Kerala government the right of first refusal should be upheld. This clause was part of the original agreement under which the State transferred ownership of the unit to BrahMos Aerospace.

The Kerala government, through its Industries Department, had called for a meeting of stakeholders following the news of the separation move. However, representatives from the BrahMos management reportedly did not attend the meeting. A letter sent by Chief Minister Pinarayi Vijayan to the Union Government on the matter has also gone unacknowledged.

The restructuring move comes at a time when the global significance of the BrahMos missile system has risen in the wake of Operation Sindhu. The Thiruvananthapuram unit recorded an operational profit of Rs. 24 crore in the last financial year, indicating its viability.

The unit in question was formerly a public sector undertaking under full ownership of the Kerala government—Kerala Hitech Industries Ltd. (KELTEC). On December 31, 2007, the State handed it over to BrahMos Aerospace for a token sum of Rs. 1. The transfer included 15.8 acres of land, a state-of-the-art manufacturing plant spanning over one lakh square feet, modern machinery, and a bank balance of Rs. 7 crore.