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Petro Min for Rs 310-cr special dividend from EIL
New Delhi, Dec 01: The Petroleum Ministry is believed to have suggested stripping Engineers India Ltd (EIL) of a little less than half of its Rs 656.98 crore of reserves before the government exits the consultancy firm.
New Delhi, Dec 01: The Petroleum Ministry is believed to have suggested stripping Engineers India Ltd (EIL) of a little less than half of its Rs 656.98 crore of reserves before the government exits the consultancy firm.
The ministry has also given concurrence to categorisation of data and drawings of various installations EIL had provided consultancy for, a move that paves the way for calling of financial bids for sale of 51 per cent government equity in EIL, informed sources said.
The next meeting of Inter-Ministerial Group (IMG) on EIL Disinvestment is likely to consider the Petroleum Ministry's suggestion for taking out a special dividend of Rs 310 crore, sources said, adding most of the bidders have completed due diligence and have sent comments on draft shareholders agreement.
According to the categorisation plan, data and drawings relating to defence and security installations have been put in Category-I while those relating to oil sector installations like pipelines, refineries and offshore platforms have been put in Category-II.
Category-III would comprise data relating to items of general nature, sources said.
The strategic investor would need a nod of the concerned ministries before taking out drawings and data in Category-I while for the Category-II data administrative ministry nod was needed if the successful bidder shares the same with outside parties.
For the third category, there would be no such binding.
Over half a dozen companies including ONGC-Bhel combine, Gail-L&T combine, Reliance Industries, Essar, Tisco, Warburg Pincus, Jindal and Russia-based Sun Securities owned by the Khemkas are in the race for picking 51 per cent government stake in EIL.
The government is likely to invite price bids for EIL next month and the sell-off is likely to be completed by fiscal end, sources said.
Suitors have completed due diligence of EIL and discussions are now on for finalising draft shareholders agreement, they said. Bureau Report
The next meeting of Inter-Ministerial Group (IMG) on EIL Disinvestment is likely to consider the Petroleum Ministry's suggestion for taking out a special dividend of Rs 310 crore, sources said, adding most of the bidders have completed due diligence and have sent comments on draft shareholders agreement.
According to the categorisation plan, data and drawings relating to defence and security installations have been put in Category-I while those relating to oil sector installations like pipelines, refineries and offshore platforms have been put in Category-II.
Category-III would comprise data relating to items of general nature, sources said.
The strategic investor would need a nod of the concerned ministries before taking out drawings and data in Category-I while for the Category-II data administrative ministry nod was needed if the successful bidder shares the same with outside parties.
For the third category, there would be no such binding.
Over half a dozen companies including ONGC-Bhel combine, Gail-L&T combine, Reliance Industries, Essar, Tisco, Warburg Pincus, Jindal and Russia-based Sun Securities owned by the Khemkas are in the race for picking 51 per cent government stake in EIL.
The government is likely to invite price bids for EIL next month and the sell-off is likely to be completed by fiscal end, sources said.
Suitors have completed due diligence of EIL and discussions are now on for finalising draft shareholders agreement, they said. Bureau Report