GoI Extends CEL Divestment Bid Deadline for Second Time up to May 16

For the second time in a row, the Government of India (GoI) has extended the last date for submitting bids for its solar products manufacturing unit Central Electronics Ltd (CEL) by a month.

Now, the extended last date and time of expression of interest (EoI) submission is May 16, 2020, at 11:00 hours, from its previous date of April 16, 2020, at 11:00 hours.

Also, the new date and time for the opening of EoI is May 16, 2020, at 15:00 hours, against the earlier date of April 16, 2020, at 15:00 hours.

The reason cited by the government is on the back of ongoing situation related to the spreading of coronavirus across the country.

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 the month of 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.