Govt sells Central Electronics to Nandal Finance and Leasing for Rs 210 cr, BFSI News, ET BFSI

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The government on Monday approved sale of Central Electronics Ltd to Nandal Finance and Leasing for Rs 210 crore. This is the second strategic stake sale by the government after Air India.

“The Alternative Mechanism … has approved the highest price bid of M/s Nandal Finance and Leasing Pvt Ltd for sale of 100% equity shareholding of GoI in Central Electronics Ltd (CEL) – a CPSE under the Department of Scientific and Industrial Research (DSIR). The winning bid is for Rs 210,00,60000,” an official statement said.

The Alternative Mechanism (AM) on strategic disinvestment comprises Road Transport Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman and Minister of State for Science and Technology Jitendra Singh.

Two bidders had put in financial bids for CEL — Nandal Finance and Leasing Pvt Ltd for Rs 210 crore and JPM Industries Ltd bid for Rs 190 crore.

The higher of the two price bids, submitted by M/s Nandal Finance and Leasing Pvt Ltd, was found to be above the reserve price, the statement added.



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Govt of India, Asian Development Bank sign $300 million loan to improve primary health care in the country, BFSI News, ET BFSI

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NEW DELHI: The government of India (GOI) and Asian Development Bank (ADB) has signed a 300 million dollar loan to improve primary health care in urban areas of 13 states that will benefit over 256 million urban dwellers including 51 million from slum areas.

As per an official release by the Ministry of Finance, “Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance, signed for the GOI the agreement for Strengthening Comprehensive Primary Health Care and pandemic preparedness in Urban Areas Program while Takeo Konishi, Country Director of ADB’s India Resident Mission, signed for ADB.”

Mishra said, “the programme supports the Government of India’s key health initiatives – Ayushman Bharat Health and Wellness Centres (AB-HWC) and Pradhan Mantri Atmanirbhar Swasth Bharat Yojana (PM-ASBY) – which has been renamed as Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) – by expanding availability and access to quality primary health care services particularly for vulnerable populations in urban areas.”

Ayushman Bharat programme, launched in 2018, aims to improve access to comprehensive primary health care as a key strategy to achieve universal health coverage in India. With the spread of the coronavirus disease (Covid-19) pandemic that put additional pressure on the country’s health system, the government launched PM-ASBY later renamed as PM-ABHIM in October 2021 to adopt a long-term approach to system strengthening to prepare for future pandemics and other emergencies.

“Ensuring equitable access to non-COVID-19 primary health care is critical amid challenges posed by the coronavirus pandemic to India’s health system,” said Konishi.

The programme will be implemented in urban areas across 13 states: Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Telangana, and West Bengal.

Besides the pandemic response, interventions through the program promote increased utilization of urban HWCs with the provision of comprehensive primary health care packages including non-communicable diseases and community outreach services such as awareness-raising activities on health care options, particularly for women.

Delivery and health information systems for primary health care will be upgraded through digital tools, quality assurance mechanisms, and engagement and partnership with the private sector.

The programme is supported by a 2 million dollar technical assistance grant from ADB’s Japan Fund for Poverty Reduction to provide support for programme implementation and coordination, capacity building, innovation, knowledge sharing and application of scalable best practices across the healthcare system.



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Govt extends deadline for transaction, legal advisors to bid for managing IDBI Bank sale till Jul 22, BFSI News, ET BFSI

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NEW DELHI: The government has extended the deadline for transaction and legal advisors to bid for managing the IDBI Bank strategic sale by 9 days till July 22.

The Department of Investment and Public Asset Management (DIPAM) had on June 22 invited bids from merchant bankers and law firms for managing and giving legal advice for the sale process. The last date to put in bids was July 13.

“… The competent authority has decided to extend the bid submission date of the… tender by nine days. The last date of bid submission will now be July 22, 2021,” the DIPAM said in a notice.

DIPAM, which manages government’s equity, had also clarified to the merchant bankers that LIC’s holding in IDBI Bank would be sold along with government’s stake, but the exact quantum of stake dilution would be decided later.

The central government and LIC together own more than 94 per cent equity of IDBI Bank.

LIC, currently having management control, has a 49.24 per cent stake, while the government holds 45.48 per cent in the bank. Non-promoter shareholding stands at 5.29 per cent.

The cabinet in May had approved the strategic sale of the entire stake of government and Life Insurance Corporation (LIC) in IDBI Bank.

In response to queries received from potential transaction advisors in IDBI Bank, DIPAM has clarified that since LIC’s stake would be sold along with that of the government’s, a single transaction advisor would manage the entire share sale process.

“The mandate received from CCEA is to offload up to 100 per cent stake of GoI and LIC along with transfer of management control. However, the exact quantum is yet to be worked out. It will be determined, as we go through the transaction and ascertain investors’ interest and market appetite.

“It is clarified that LIC’s stake will be sold along with GoI’s shareholding in this transaction. So there is only one transaction advisor,” it said.

The quantum of stake dilution would be declared before RFP (Request for Proposal) stage of the transaction, it added.

Finance Minister Nirmala Sitharaman in her Budget for 2021-22 had said the process of privatisation of IDBI Bank would be completed in the current fiscal. The government aims to mop up Rs 1.75 lakh crore in the current fiscal from minority stake sale and privatisation.

Of the Rs 1.75 lakh crore, Rs 1 lakh crore is to come from selling government stake in public sector banks and financial institutions. Rs 75,000 crore would come as CPSE disinvestment receipts.



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CCEA clears strategic disinvestment of IDBI Bank, BFSI News, ET BFSI

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The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has given its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank Ltd. The extent of respective shareholdings to be divested by the Government of India and the Life Insurance Corporation of India (LIC) will be determined at the time of structuring of transaction consultation with RBI.

Government of India (GoI) and LIC together own more than 94% of equity of IDBI Bank (GoI 45.48%, LIC 49.24%). LIC is currently the promoter of IDBI Bank with Management Control and GoI is the co-promoter

The LIC Board of Directors have passed a resolution to the effect that LIC may reduce its shareholding in IDBI Bank Ltd by divesting its stake in conjunction with a strategic stake sale proposed by the government, with the goal of relinquishing management control and considering price, market outlook, statutory requirements, and policyholder interests.

It is expected that strategic buyer will infuse capital, new technologies, and best management practises for the optimal development business potential and growth of IDBI Bank Ltd.’s and will generate more business without relying on LIC or government assistance/funds.



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