The Narendra Modi government on Wednesday (September 28) formally terminated the sale of Central Electronics Ltd (CEL) to Nandal Finance and Leasing as the selected bidder failed to disclose its ongoing litigation at the National Company Law Appellate Tribunal (NCLT).

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The government had in November 2021 approved the sale of CEL, under the Department of Scientific and Industrial Research (DSIR), to Nandal Finance and Leasing for Rs 210 crore. The transaction was scheduled to be completed by March 2022.

The government said it has received certain allegations against the bidder Nandal Finance and Leasing and the bidding process. While keeping the letter of intent (LoI) on hold, the government examined these allegations and found merit in one allegation regarding the pendency of a proceeding in NCLAT against the successful bidder.

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Incorporated in 1974, CEL, under the Ministry of Science and Technology, is a pioneer in the field of solar photovoltaic (SPV) technology, developing it with its own R&D. It has also created axle counter systems that are being used in railway signalling systems for the safe running of trains.

The government had issued a request for expressions of interest (EoI) on February 3, 2020, following which three EoIs were received. However, only two companies — Nandal Finance and Leasing Pvt Ltd and JPM Industries Ltd — put in financial bids by October 12, 2021. While Ghaziabad-based Nandal Finance and Leasing put in a Rs 210-crore bid, JPM Industries quoted Rs 190 crore.

The alternative mechanism (AM) team on the strategic disinvestment of CEL comprised Road Transport Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman and Minister of State For Science and Technology Jitendra Singh.

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(Edited by : Shoma Bhattacharjee)

First Published:Sept 28, 2022 7:58 PM IST