In a regulatory submitting, Engineers India Ltd (EIL) mentioned its board of administrators in a gathering on Thursday “thought-about the proposal for acquisition of 100 p.c paid-up share capital of PDIL from President of India.”
The Board gave “the approval of bidding for a similar by the use of Share Acquisition Route,” it mentioned. “Different particulars can’t be disclosed attributable to confidentiality of the matter.”
The federal government in October final 12 months invited bids from EIL or different equally positioned PSUs to purchase out its 100 p.c shareholding in consultancy agency PDIL.
Miniratna PSU Initiatives & Improvement India Ltd (PDIL) is underneath the executive management of Chemical and Fertilizers Ministry.
“The Authorities of India has ‘in-principle’ determined to disinvest 100 p.c of its shareholding in PDIL by means of strategic disinvestment with the switch of administration management to Engineers India Ltd (EIL) or different comparable Central Public Sector Enterprises (CPSEs),” mentioned the Preliminary Info Memorandum inviting Expression of Curiosity floated in October final 12 months.
Earlier this 12 months, Oil and Pure Fuel Corp (ONGC) acquired authorities’s 51.11 per cent stake in Hindustan Petroleum Corp Ltd (HPCL) for Rs 36,915 crore. This had helped the federal government meet its sell-off (disinvestment) goal for 2017-18 fiscal.
Based in 1978, PDIL offers design engineering and consultancy providers. It serves fertilizer and allied chemical industries, oil and gasoline sector, energy and infrastructure sectors in India and internationally.
EIL too is the same enterprise. It nevertheless is underneath the executive management of the Ministry of Petroleum and Pure Fuel. Based in 1965, it offers design, engineering, procurement, development, and built-in challenge administration providers primarily for oil and gasoline and petrochemical industries.
As a way to herald effectivity in functioning of public sector undertakings, the federal government is pushing for merger of equally positioned corporations. The Cupboard has authorised the merger of SBI with its 5 associates.
There are six consultancy corporations, which can merger into EIL to create a mega-consultancy agency. The corporations are MECON, Telecommunications Consultants India (Ltd), Engineering Initiatives (India), WAPCOS and PDIL.
Rationale behind the transfer is that merger would assist create a giant firm that may compete globally and put India on the worldwide map of doing turnkey tasks.
EIL is the most important state-owned consultancy agency within the nation which offers turnkey engineering options to tasks in India and overseas.
As of March 2017, the paid up capital of PDIL is Rs 17 crore. As of September 2017, PDIL has 363 everlasting and 116 contractual workers.