New Delhi: The government on Monday announced Central Electronics Ltd. That is, it approved the sale of CEL (Central Electronics Ltd) to Nandal Finance and Leasing for Rs 210 crore. This is the second strategic disinvestment in the current financial year. Recently, the government has given the responsibility of operating Air India to Tata.
Central Electronics Ltd. was formed in the year 1974
CEL, which comes under the Ministry of Science and Technology, was formed in 1974. The company is a leader in the field of Solar Photovoltaics (SPV) and has developed the technology with its own Research and Development (R&D) efforts. The company has also developed ‘Axle Counter Systems’ which is being used in Railway Signaling System for the safe running of trains.
Two companies had bid
The government had invited a Letter of Intent (LoI) on February 3, 2020. After that three letters of intent were received. However, only two companies Nandal Finance & Leasing Pvt Ltd. and JPM Industries Ltd. submitted the financial bids on October 12, 2021. Nandal Finance & Leasing Pvt Ltd of Ghaziabad. While JPM Industries made a bid of Rs 210 crore, JPM Industries had bid for Rs 190 crore.
According to the official statement, “The alternative mechanism has…. Central Electronics Ltd. of Government of India. For the sale of 100% equity stake in M/s Nandal Finance & Leasing Pvt. Ltd. The highest bid of Rs. The successful bid was worth Rs 210 crore.”
The deal is expected to be completed by the end of the current financial year 2021-22
Road Transport Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman, and Science and Technology Minister Jitendra Singh are included in the Alternative Mechanism on Strategic Disinvestment. According to the statement, the deal is expected to be completed by the end of the current financial year 2021-22 (April-March).