3 months on, Ajmer dargah awaits Zardari's promised donation

New Delhi, Feb 10: The government is set to privatise Central Electronics Ltd, a CPSE under the Department of Science and Technology, by selling its 100% stake with management control and has invited the Expression of Interest for the same by March 16.

The selected bidder will be required to lock in its shares for a period of three years during which it cannot undertake the sale of its stake in CEL, the PIM (Preliminary Information Memorandum) said.

"The government of India has 'in-principle' decided to disinvest 100 per cent of its equity shareholding in CEL (which is equivalent to 100 per cent of the total paid up equity share capital of CEL) through Strategic Disinvestment with transfer of management control (Strategic Disinvestment or Transaction)," DIPAM, the Disinvestment Department, said.

The process for the transaction has been divided into two stages, namely, Stage I and Stage II.

After BPCL and Air India, this is yet another CPSE which government is slated to privatise if it gets offers from bidders.

The government has set a challenging target of Rs 2.1 lakh crore disinvestment proceeds from CPSE sell-offs and IPOs, OFSs (Offer for sale) in the next fiscal and it going out all guns blazing to meet that target after revising this fiscal target of Rs 1.05 lakh crore to Rs 65,000 crore.

The Interested Bidders (which can also include employees of CEL) must have a minimum net worth of Rs 50 crore as on March 2019. DIPAM has released complete invitation Preliminary Information Memorandum (PIM) of CEL. Resurgent India Limited is the advisor to the Transaction.

CEL is a pioneer in the country in the field of Solar Photovoltaic (SPV) with the distinction of having developed India's first Solar cell in 1977 and first Solar panel in 1978 as well as commissioning India's first solar plant in 1992.

More recently, it has developed and manufactured the first crystalline flexible solar panel especially for use on the passenger train roofs in 2015.

Its solar products have been qualified to International Standards IEC 61215/61730. CEL is further working on development of a range of new and upgraded products for signaling and telecommunication in the railway sector.

In the SWOT analysis of the CPSE, DIPAM has stated under weakness that "the company has weak financial loss due to past losses, high manufacturing cost and non payment of dues by state nodal agencies affecting the financial position of the company".

The CPSE has adequate land for expansion, the SWOT analysis said adding "the CPSE faces threat of dumping of solar cells at very low rates which makes solar PV manufacturing industry unviable".

Entry of new players in the market for solar products and railway signalling systems also is cited as a threat.

Mar 21: India’s economy, already in the grip of a slowdown, is in for more pain after Prime Minister Narendra Modi appealed to citizens to stay at and work from home to curb the coronavirus outbreak.

The services sector, which accounts for about 55% of India’s gross domestic product, is poised to be the worst hit after Modi, in a late evening address on Thursday, urged citizens to go on a self-imposed curfew for a day and private companies to allow employees to work from home for longer. In the country’s vast informal sector, social-distancing measures could mean a dent to productivity and consumption because of job or pay losses.

“The impact of a partial lock-down or social distancing will be significant,” said Rahul Bajoria, a senior economist at Barclays Plc in Mumbai. “If there’s a widespread community outbreak, GDP could fall as low as 3.5% in the year starting April 1.”

Shrinking output may limit growth in an economy that’s already set to expand at an 11-year low of 5% in the current year to March 31. Before the virus outbreak, India had forecast growth to recover to 6%-6.5% in the next fiscal year. S&P Global Ratings and Fitch Ratings have already slashed their growth forecast by 50 basis points.

“The current social-distancing measures will severely impact airlines, hotels, malls, multiplexes, restaurants and retailers,” according to analysts at Crisil Ltd., the local unit of S&P Global. “Lower footfalls and occupancies, decline in business volume and sub-optimal operating efficiencies will impact cash flows of companies in these sectors,” wrote the analysts led by Chief Economist Dharmakirti Joshi.

The government will try to announce a relief package for virus-affected sectors as early as possible, Finance Minister Nirmala Sitharaman said Friday.

In a televised address, Modi advised all citizens to stay at home for a day on March 22, as he sought to stem the spread of the coronavirus -- cases of which are relatively low in India at about 200, compared with more than 200,000 infected people globally. His government also barred incoming flights for a week from that day, joining a growing list of countries effectively sealing their borders.

What Bloomberg’s Economists Say

We had only earlier this week lowered our GDP outlook to consider the direct impact of the local outbreak as confirmed virus cases exceeded 100 as of March 15 and the federal and state governments announced social distancing measures that have already started to crimp economic activity. We are now revising down our GDP estimate for 4Q fiscal 2020 to 3.3%, from our 3.5%.

-- Abhishek Gupta, India economist

For more, click here

“Consumption being the biggest component of GDP, a lock-down is bound to have a big impact on the economy,” said Devendra Kumar Pant, chief economist at India Ratings and Research, the local unit of Fitch. “Modeling uncertainty in any system will be very difficult, but one can say the slowdown could deepen or prolong further.”

Work From Home

While companies, including billionaire Mukesh Ambani-controlled Reliance Industries Ltd., are asking employees to work from home, the option isn’t feasible in India’s vast informal sector.

“The option to work remotely simply won’t exist for most,” said Shilan Shah, an economist with Capital Economics Pte. in Singapore.

As many households don’t have savings buffers, the government would probably have to back this up with large-scale cash handouts that reach the poorest, he said.

Work from home is posing implementation challenges for the manufacturing sector where workers are required to be physically present at the production sites. The services sector, such as banking and information technology, also needs employees to be present in offices as confidential data is used, according to industry group Federation of Indian Chambers of Commerce and Industry.

New Delhi, Apr 24: The death toll due to the novel coronavirus rose to 723 with 37 fatalities reported since Thursday evening, while the number of cases saw a record jump of 1,752 to go up to 23,452 cases on Friday, according to the Union health ministry.

The previous highest single day increase was on April 20 when 1,540 cases were reported.

The number of active COVID-19 cases stood at 17,915 as 4,813 people were cured and discharged, and one patient migrated, the ministry said.

Thus, about 20.52 per cent of the cases have recovered so far, an official of the ministry said. 

The Indian Council of Medical Research (ICMR) said that 23,502 samples have been confirmed positive as on April 24 at 9 am.

The health ministry's figure of 23,452 cases include 77 foreign nationals.

A total of 37 deaths were reported since Thursday evening of which 14 fatalities were reported from Maharashtra, nine from Gujarat, three from Uttar Pradesh, two each from Andhra Pradesh, Delhi, Madhya Pradesh, Tamil Nadu and Telangana and one from Karnataka, the ministry's data stated.

Of the 723 deaths, Maharashtra tops the tally with 283 fatalities, followed by Gujarat at 112, Madhya Pradesh at 83, Delhi at 50, Andhra Pradesh at 29, Rajasthan at 27 and Telengana at 26.

The death toll reached 24 in Uttar Pradesh, 20 in Tamil Nadu while Karantaka has reported 18 deaths.

Punjab has registered 16 deaths while West Bengal has reported 15 fatalities.

The disease has claimed five lives in Jammu and Kashmir, while Kerala, Jharkhand and Haryana have recorded three COVID-19 deaths each.

Bihar has reported two deaths, while Meghalaya, Himachal Pradesh, Odisha and Assam have reported one fatality each, according to the ministry data.

However, a news agency tally of the figures reported by various states as on Friday showed 23,577 cases and 743 deaths in the country.

There has been a lag in the Union health ministry figures, compared to the number of deaths announced by different states, which officials attribute to procedural delays in assigning the cases to individual states.

According to the ministry's data updated in the evening, the highest number of confirmed cases in the country are from Maharashtra at 6,430 followed by Gujarat at 2,624, Delhi at 2,376, Rajasthan at 1,964, Madhya Pradesh at 1,852 and Tamil Nadu at 1,683.

The number of COVID-19 cases has gone up to 1,604 in Uttar Pradesh, 984  in Telangana and 955 in Andhra Pradesh. The number of cases has risen to 514 in West Bengal, 448 in Kerala, 463 in Karnataka, 427 in Jammu and Kashmir,  277 in Punjab and 272 in Haryana.

Bihar has reported 176 coronavirus cases, while Odisha has 90 cases. Fifty-five people have been infected with the virus in Jharkhand and 47 in Uttarakhand. Himachal Pradesh has 40 cases, Chhattisgarh and Assam have registered 36 infections each so far.

Chandigarh has 27 COVID-19 cases, Andaman and Nicobar Islands 22 while  18 cases have been reported from Ladakh.

Meghalaya has reported 12 cases, and Goa and Puducherry have seven COVID-19 cases each.

Manipur and Tripura have two cases each, while Mizoram and Arunachal Pradesh have reported a case each.

"Our figures are being reconciled with the ICMR," the ministry said on its website.

States wise distribution is subject to further verification and reconciliation, it said.