DIPAM starts disinvestment process for PDIL, seeks bids from asset valuers online

• According to the RFP, the bid submission has opened on Monday and will close on August 5 and bids can only be submitted online

• DIPAM is seeking asset valuers for the strategic disinvestment of 100 percent equity shareholding of the Centre in PDIL, along with transfer of management control

New Delhi: The government has started the process of disinvestment of its 100 percent share in PDIL (Project & Development India Limited) on Monday and is seeking to engage asset valuers in this regard, an RFP (Request for Proposal) floated by DIPAM (Department of Investment and Public Asset Management) showed. This time, however, DIPAM has clearly specified that it will not accept manual bids and has requested potential candidates to submit bids online by August 5.

"Bids shall be submitted online only at CPPP website: https://eprocure.gov.in/eprocure/app. Tenderer/Bidder are advised to follow "Instructions To Bidder for Online Bid Submission" provided in the Annexure-I. Bid documents may be scanned with 100 dpi with black and white option which helps in reducing size of the scanned document," said the notification posted by DIPAM.

PDIL disinvesment: The new timeline 

According to the RFP, the bid submission has opened on Monday and will close on August 5. Starting Monday, bidders will be able to seek clarifications from DIPAM until July 27. A pre-bid meeting is slated to take place on July 29. "Intending Bidders are advised to visit this website regularly till closing date of submission to keep themselves updated as any change/ modification in the tender/RFP will be intimated through this website only by corrigendum / addendum/ amendment," said the notification.

On offer: 100% shareholding along with management control

"DIPAM, in the process of strategic disinvestment of 100 percent equity shareholding of the Centre in PDIL (Project & Development India Limited) through strategic sale with transfer of management control, requires the services of a reputed Asset Valuer to carry out a diligent and fair assets valuation of PDIL and assist Government in the process," the RFP said.

The broad scope of work for the Asset Valuer is to carry out the valuation of all assets of PDIL including its plant and machinery, land and buildings, furniture and fixtures, civil infrastructure on "as is where is basis" and keeping in view the objective of disinvestment.
As on March 31, 2019, PDIL's authorised capital is Rs 60 crore (4,70,000 equity shares of Rs 1,000 each and 1,30,000 seven (7) percent (%) non-cumulative Redeemable Preference shares of Rs 1,000 each) and paid up share capital is Rs 1,72,985 crore (1,72,985 equity shares of Rs. 1,000 each) in the name of President of India and its nominee. The company is unlisted.

PDIL disinvestment was approved in 2016

PDIL had been a loss-making company at the time a disinvestment plan for the PSU was approved, however, in the aftermath it has revived its fortune and rekindled its growth story. PDIL had been incurring continuous losses from 2014-15 to 2016-17, but at the end of financial year 2018-19, it also paid its highest-ever dividend to the government. The disinvestment plan for PDIL was approved in 2016 and since FY2017-18, it has been making profits. In FY2018-19, the PSU registered the highest-ever Profit after Tax (PAT) of Rs 30.36 crore, highest-ever turnover of Rs 131.50 crore, highest-ever Revenue from Operations of Rs 116.50 crore.

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