India Cabinet Approves Tender

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has given approval for partial modification of the CCEAs decision dated October 2016 by allowing all eligible Central Public Sector Enterprises EPSEs and private sector entities to participate in the bidding for the strategic disinvestment of Engineering Projects India Limited EPIL.Earlier CCEA in its meeting held on October 2016had given in-principle approval for strategic disinvestment of 100 shareholding of Government of India in EPIL through merger with a similarly placed CPSE. The modification would promote competition in the bidding process and may result in higher yield to the Government of India.ImpactThe proposed strategic disinvestment of EPIL would unlock resources to be used to finance the social sectordevelopmental programmes of the Government benefiting the public. It is also expected that the successful strategic buyer will bring in funds technology orand new management practices for the optimum development of business and growth of the company which may generate more employment opportunities.