CEL Privatization: There is a ban on the privatization of CEL, know what has happened

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New Delhi
It will be called the result of the struggle of the employees that the government has taken care of it. It is reported that the Central Government has banned the privatization of Central Electronics Limited (CEL), a government company based in Ghaziabad, Uttar Pradesh. The employees union of this company is said to have approached the court against the sale of an important PSU to the firm from Les-Non.

Information revealed by the Ministry of Finance
According to news agency PTI, Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) in the Union Finance Ministry made this information public. Allegations of undervaluation in the highest bid of Rs 210 crore made by Nandal Finance & Leasing, the company that bought CEL, are being probed, he said.

LOI not issued
Pandey said that the letter of intent (LoI) for sale of 100 per cent government stake in CEL to Nandal Finance and Leasing has not been issued yet. This is because the allegations are being investigated. Notably, the government had in November approved the sale of CEL to Nandal Finance and Leasing under the Department of Scientific and Industrial Research (DSIR) for Rs 210 crore. According to the earlier plan, the management of this company is to be handed over to the private company by March 2022.

workers union protest
After the decision to sell CEL came to the fore, the CEL Employees Union approached the Delhi High Court against privatization. Opposition Congress has also alleged that the company has been undervalued. Pandey said the Inter-Ministerial Group on Disinvestment is probing the allegations. He said that we have put the LoI on hold as it is a sub-judice matter and the allegations of the employees union are being probed.

Turnover Rs 200 crore
Pandey said that the book value of CEL is Rs 108 crore and the turnover is around Rs 200 crore. Referring to the allegations, Pandey said how a company with a book value of Rs 108 crore can be valued at Rs 1,000 crore. Some years CEL made a profit of Rs 20 crore, and sometimes they made a profit of Rs 1 crore.

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