Govt Extends CEL Bid Deadline to 1 Month amid Covid-19

Govt Extends CEL Bid Deadline to 1 Month amid Covid-19

On the back of ongoing situation due to the Covid-19 outbreak in the country, the Government of India (GoI) has extended the deadline for submitting bids for its solar products manufacturing unit Central Electronics Ltd (CEL) by a month.

Solar Cells

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.

Now, 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”.

CEL 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.

In the SWOT analysis of CEL, DIPAM has mentioned under weakness that “CEL has weak financial position due to past losses; high manufacturing cost; and non-payment of dues by state nodal agencies affecting the financial position of the company”.

Further, in threats, DIPM stated that “dumping of Solar cells at very low rates make Solar photovoltaic (PV) manufacturing industry unviable; and entry of new players in the market for solar products as well as Railway signalling systems”.

Meanwhile, on the strengths, it stated that “the company is having an adequate land for expansion; NCR location-proximity to New Delhi; expertise in the development of customising solar solutions; expertise in design, development and supply of strategic devices and components; internationally certified quality products; and trained and experienced manpower”.

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Manu Tayal

Manu is an Associate Editor at Saur Energy International where she writes and edits clean & green energy news, featured articles and interview industry veterans with a special focus on solar, wind and financial segments.