January 19, 2022

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The World Live Breaking News Coverage & Updates IN ENGLISH

After Air India, govt okays sale of CEL for Rs 210 crore

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After Air India, govt okays sale of CEL for Rs 210 crore
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After Air India, govt okays sale of CEL for Rs 210 crore
After Air India, govt okays sale of CEL for Rs 210 crore

NEW DELHI: The Centre on Tuesday announced the sale of state-run Central Electronics Ltd to Nandal Finance and Leasing for Rs 210 crore, the second privatisation of a public sector entity in the current fiscal after the sale of Air India to the Tata group. The government hopes to complete the transaction in the current financial year.
The government has set a target of raising Rs 1.75 lakh crore from disinvestment in state-run entities and listing of LIC. So far, the government has has raised Rs 9,330 crore as disinvestment receipts. The Cabinet Committee on Economic Affairs (CCEA) empowered Alternative Mechanism, which includes finance minister Nirmala Sitharaman, road transport minister Nitin Gadkari, MoS (independent charge) science and technology Jitendra Singh, approved the highest price bid of Nandal Finance and Leasing Pvt Ltd for sale of 100% equity shareholding of the government in Central Electronics Ltd (CEL).
The public sector entity falls under the Department of Scientific and Industrial Research (DSIR). It was established in 1974, with an objective to commercially exploit indigenous technologies developed by national laboratories and R&D institutions in the country. The CEL is a pioneer in the country in the field of Solar Photovoltaic (SPV) and it has developed the technology with its own R&D efforts, according to the company’s website. The process of CEL disinvestment started in 2016 with the ‘in-principle’ approval of the CCEA. Final bids were invited in 2019 but it did not receive any response from investors, according to a government statement.
The process was re-launched in February 2020 and three bids were received by July and all the bidders were shortlisted by the transaction advisor. The shortlisted bidders were given access to the virtual data Room (VDR) through which CEL provided information to the qualified bidders.

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