Economy & Equity
People’s Commission Urges Parliament to ‘Fully Investigate’ CEL's Sale https://thewire.in/government/peoples-commission-urges-parliament-to-fully-investigate-profit-making-cpse-cels-sale
The Centre has approved the sale of 100% equity shareholding of the government in Central Electronics Ltd to Nandal Finance and Leasing for a paltry sum of Rs 210 crore.
The Peoples’ Commission on Public Sector and Public Services (PCPSPS) has released a statement “The proceeds from the disinvestment will be meagre compared to the real value of the assets sold because of the inbuilt bias in hasty privatisation towards undervaluation of assets. Moreover, the corporate sector which would buy the public assets would be raising most of the needed resources from the public sector banks.”
The Cabinet Committee on Economic Affairs (CCEA) empowered alternative mechanism for disinvestment – which includes finance minister Nirmala Sitharaman, road transport minister Nitin Gadkari, Minister of state (independent charge) for science and technology Jitendra Singh – on November 30, 2021 approved the highest bid of Nandal Finance and Leasing Pvt. Ltd for the sale of 100% equity shareholding of the government in CEL.
CEL is run by the Department of Scientific and Industrial Research (DSIR), It earned a gross profit of Rs 136 crore in FY21. As of March 31, 2021, the market value of the 50-acre land the CPSE possesses was worth Rs 440 crore as per the circle rate. It has orders in the pipeline worth Rs 1,592 crore, and with these orders alone, CEL would be able to provide the Union government with a gross profit of about Rs 730 crore. It also has Rs 132 crore as collectible dues from the government agencies.
The transaction is expected to be completed during the current financial year 2021-22 (ending March 2022), an official statement had said.
On Trend for Privatisation: Kanhaiya Kumar at Goa Bahujan Samvad 7 Jan 2022 https://youtube.com/embed/78G2A3HlF9A?start=1320&end=1703
Notagainst Private Sector.. but But if Public Sector is finished, then even the Private Sector will not function for people.. Not filling posts is also a sign of impending privatisation. Model of Vikas is take votes from the majority but notes to a few friends.
You will recall that Goa foundation has been demanding control of mining and its proceeds to the local people (governed by Public Democratic Law, rather than private companies, whose shares holders only have interest in shareholder value of extracted profits, not local development.
Govt selling profit making strategic PSUs like peanuts to entities of doubtful credentials: Press briefing by Prof Gourav Vallabh at AICC HQ https://www.youtube.com/watch?v=DG82K6W_70k https://www.youtube.com/watch?v=qaEVOcMsZvA Dec 30, 2021 Indian National Congress the government undervalued central electronics
From Press Statement:
The BJP government on 29th November 2021 announced the strategic disinvestment of Central Electronics Limited (CEL).
Reserve Price Fixed at 44% of CEL Land Value alone as per circle rate:
Reserve Price set at 20% of Valuation of CEL:
Strong Financials warranted a higher Reserve price: CEL is a profit-making PSU with a net sales of Rs. 296 Crores and Gross Profit of Rs 136 Crores in 2020-21. As of 31st October 2021, CEL has pending orders worth Rs 1592 Crores. With these orders alone, CEL would give GoI a Gross Profit of ~ Rs 730 Crores .
Highly Strategic to National Interest:, CEL is a strategic player in four divisions: Defence, Railway, Solar business and Security systems.
Inter-Connected Bidders: There were two bidders who participated in the bid for CEL: M/S Nandal Finance and Leasing Pvt. Ltd. and M/S. JPM Industries. Both the bidders are inter-related to each other through their parent companies and have quoted bid price nearly equal to the reserve value of Rs. 194 Crores.
Weak Credentials and pending case of winding up in NCLAT against M/s Nandal Finance and Leasing Pvt. Ltd.:
The Congress party asks .. Why a profit making strategic PSU us handover to company with less than 10 employees and no domain experience?
Privatisation: What Does It Really Mean? https://www.youtube.com/watch?v=MCzLHMip4LQ Mar 5, 2021
"The talk about privatization is actually selling some assets into the private sector; the ones that have raised a lot of hope in the markets are two public sector banks and one of the general insurance companies. For the banks, it would be a grave mistake to sell it to an industrialist," says Raghuram Rajan, former RBI Governor, on what privatisation really means in the Indian context.
He didn't favour privatisation, he said
1. Must improve governance to public sector bank
2. Bring in more professional to run public sector Bank
3. Give the board of director of the bank the authority to hire and fire the CEO
4. then take away the governance, make this public corporation run in public interest own by public rather than government.
Watch full show: https://youtu.be/OyF0soecmTE
Prannoy Roy, Raghuram Rajan, Kaushik Basu On Farmers' Protest, Economy Mar 4, 2021
In this second part of four Townhalls on post-pandemic India, Prannoy Roy discusses farmers' protest and economy with Raghuram Rajan and Kaushik Basu, as well as the Nobel Prize winners Paul Milgrom and Abhijit Banerjee. The panel will also take a close look at the Union Budget, and in particular, on the word privatisation. The panel will also discuss the importance of global ratings.
Dayanidhi Maran Shows Mirror To Govt On NPA Write-off and Haircut To Corporates| IBC | DMK | PM Modi https://www.youtube.com/watch?v=U5xjOWKC5Eg Dec 15, 2021
In the Loksabha..
Dayanidhi Maran Shows Mirror To Govt On NPA Write-off and Haircut To Corporates| IBC Large scale fraud happening in the name of IBC. The Tatas deal on Air India. 6800 crores debt write off. why cant you add ___ and manage the company. Tatas puchased VSNL, was the excess land returned to the Govt.,
India Pampering Only Certain Corporates": TN MP MK Vishnu Prasad| Tamil Nadu| Congress | Corporates https://www.youtube.com/watch?v=TvPxpeBaUdc
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