• A notification released by DIPAM said that the last date for the submission of EoIs for the disinvestment of Central Electronics has been extended from June 15 to July 15

• Central Electronics is a wholly owned by the government and had a net worth of Rs 50.34 crore as on March 2017

New Delhi: The Centre extended the last date for the submission of EoIs (Expressions of Interest) by bidders for the strategic disinvestment of Central Electronics Limited by a month on Monday. A notification released in this regard by DIPAM (Department of Investment and Public Asset Management) said that the last date for EoI submission has been extended in view of the COVID-19 situation.

Central Electronics strategic disinvestment: New deadline is July 15

The document said that the last date for the submission of EoIs for the strategic disinvestment of Central Electronics has been extended from June 15 to July 15. The central public sector enterprise (CPSE) is a wholly-owned by the government and had a net worth of Rs 50.34 crore as on March 2017.

The news comes weeks after the government extended the deadline for bid submission for the privatisation of oil PSU BPCL (Bharat Petroleum Corporation Ltd). Market volatility and the slowdown unleashed in the wake of the COVID-19 pandemic has put the government's disinvestment plan for this financial year in a pickle.

The backdrop

PSU Watch had earlier reported that sources aware of the matter had said that it is quite possible that yields from some of the big-ticket strategic disinvestment plans could be pushed to the next year. "Because of a general sense of uncertainty in the market and the crash in global crude oil prices, it is quite possible that some of the big disinvestments for this year may get pushed to the next year. Bidders have also been seeking more time. We are getting more and more queries everyday."

For fiscal year 2020-21, the government's big strategic disinvestment plan includes Air India, BPCL, CONCOR and Shipping Corporation of India, and LIC IPO. PSU Watch had reported that the government is resorting to a wait and watch approach before announcing the LIC IPO which is expected to fetch around Rs 90,000 crore. Multiple deadline extensions have already been announced for Air India and BPCL bid submission deadlines so far.

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