Government approves strategic disinvestment of Central Electronics Ltd.


  • The Union Government announced that it has approved the strategic divestment of Central Electronics Ltd (CEL) - a CPSE under the Department of Scientific and Industrial Research (DSIR).
  • This is the second strategic stake sale by the government after Air India.
  • The winning bid was by Nandal Finance and Leasing Ltd for Rs 210 crore.
  • 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.

About CEL:

  • It was established in 1974, with an objective to commercially exploit indigenous technologies developed by National Laboratories and R&D Institutions in the country.

Strategic Disinvestment

Under the Strategic disinvestment policy, the government will sell a substantial portion of the Government shareholding of a central public sector enterprise (CPSE) of up to 50%, or more, along with transfer of management control.

Government Policy on Strategic Disinvestment

The Government of India has grouped the  Central Public Sector Enterprises, Central Government Banks and Insurance companies into two sectors:

  • Strategic sectors: The presence of government companies will be bare minimum and others will be closed or merged with other public sector enterprises.

It will include:

  • Atomic energy, Space and Defence
  • Transport and Telecommunications
  • Power, Petroleum, Coal and other minerals
  • Banking, Insurance and financial services
  • Non- Strategic Sector: In this sector, CPSEs will be privatised, otherwise shall be closed.

  Government of India has set a disinvestment target of Rs 1.75 lakh crore for the financial year 2021-22.

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