After Lockdown 4.O: GoI Extends Bid Submission Date for CEL Stake Sale

With the beginning of lockdown 4.O across the country amidst coronavirus outbreak, the Government of India (GoI) has extended the deadline for submitting Expression of Interest (EoI) for 100 percent divestment of Central Electronics Ltd (CEL) up to June 15, 2020.

This is the third time when the government has to extend the bid submission deadline due to lockdown.

Now, interested bidders globally can submit their EoI by June 15, 2020, at 1100 hours, from its previous date of May 16, 2020. Also, the bids will be opened on June 15, 2020, at 1500 hours.

Further, the reason cited by the government for ‘extension of the last date of EoI due to situation related to Covid-19’.

Recently in May this year, the government had extended the last date for submitting bids for its solar products manufacturing unit Central Electronics Ltd (CEL) by a month up to May 16, 2020, from its previous date of April 16, 2020.

In April, the last date for submitting bids has been extended to April 16, 2020, from its previous date of March 16, 2020, by DIPAM citing “situation related to COVID-19”.

Earlier in February, the Department of Investment and Public Asset Management (DIPAM) issued an Expression of Interest (EoI) inviting global bids for the sale of government’s entire 100 percent stake in CEL.

CEL is a Government of India Enterprise under the Department of Scientific and Industrial Research (DSIR), Ministry of Science & Technology.

It is India’s oldest monocrystalline cell manufacturer having a capacity of 10 MW p.a. The company is also having a high-quality module manufacturing line with an installed capacity of 38 MW, i.e. 10 MW in manual line and 28 MW in an automated line.

It’s paid-up capital is Rs 69.22 crore and net worth is Rs 75.99 crore as on March 31, 2019.

According to the Preliminary Information Memorandum (PIM), the selected bidder will be required to lock in its shares for a period of 3 years during which it cannot undertake the sale of its stake in CEL.

For the eligibility criterion, the interested bidders must have a minimum net worth of Rs 50 crore and shall be in existence for at least three financial years as on March 31, 2019.