Insight Online News
New Delhi, Dec 29 : Congress on Tuesday slammed the union government for selling Central Electronics Ltd to the private sector for Rs. 210 crore, stating it is lower than the company’s worth, and also raised questions on the firm to which the strategic PSU was sold.
The issue was raised by Congress spokesperson Gourav Vallabh, who said the strategically important CEL was sold to a firm called Nandal Finance and Leasing Pvt Ltd, in which the major equity holder is a furniture and interior designing company.
“The year end sale of the Government of India is on. A company of strategic importance has been finished. The name of the company is Central Electronics Limited in Sahibabad, said Vallabh.
“On November 29, this company was sold for Rs. 210 crore… Just the land owned by the company is worth Rs,. 440 crore and it has orders worth over Rs. 1500 crore, of which around Rs. 700 crore will be gross profit,” he said.
“It was sold to Nandal Finance and Leasing Pvt Ltd. In 2020 they had less than 10 employees. 99.96 percent equity was with an interior decoration and furniture company. How did they sell a company of strategic importance to them? A case of liquidation of Nandal Finance is registered, and a government of India company has been sold to them?” the Congress spokesperson said.
He also alleged that there were only two bidders, and the second bidder, M/S JPM industries. He said the parent company of Nandal and JPM have a common director.
The government had approved Nandal Finance and Leasing Pvt Ltd’s bid to acquire 100% stake in public sector Central Electronics Ltd for Rs 210 crore.
The transaction is expected to be completed by the end of current fiscal 2021-22.
This was the second attempt by the government to sell the public sector company. While in the first attempt no financial bids were received, two private firms submitted their financial bids this time.
As against the reserve price of Rs 194 crore, Nandal Finance and Leasing Pvt Ltd submitted the bid of Rs 210 crore. The second bidder JPM Industries placed the bid of Rs 190 crore.