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Nirmala Sitharaman: Indian Companies will not be Allowed to Acquire at a Paltry Price

Nirmala-Sitharaman
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Finance Minister Nirmala Sitharaman has said that the government will ensure that the acquisition of Indian companies cannot be done ‘at a paltry price’. The Finance Minister’s statement comes amid concerns over the aggressive takeover of Indian companies.

Inside:

  •  Indian companies will not be allowed to acquire at a paltry price
  • The Finance Minister’s statement comes amid concerns over the aggressive takeover of Indian companies
  • The process to sell the debt-ridden state-run airline was started on 27 January.

Industries around the world have been affected due to reduced demand due to the applicable lockdown due to COVID-19. The Finance Minister said that in such a scenario, players with more cash have the opportunity to buy companies at cheap valuations.

The Finance Minister said, “This is the reality, but we will ensure that the companies that Indians have built up with their sweat, whose brand value is not able to buy people who are just waiting for the opportunity.” Sitharaman said in an interview to a TV channel, “This is the reason why we are worried about it.” We will definitely do something so that Indian industries cannot be acquired at a small cost. We want them to carry on with their business once everything is normal.

The government has extended the bid deadline for the second time for the privatization of Bharat Petroleum Corporation Limited (BPCL), the country’s second-largest refinery due to the COVID-19 epidemic. According to an official notice, the last date for submission of interest papers has been extended by more than a month from 31 June to 31 July.

The Union Cabinet approved the sale of the entire 52.98 percent stake in BPCL in November last year. On March 7, letters of interest (EOIs) were sought from those interested in purchasing the stake. At the same time, the government has extended the bidding deadline until June 30 for Air India. The deadline for placing bids in the Air India auction has been extended for the second time. The process to sell the debt-ridden state-run airline was started on 27 January.

The government has extended the bid deadline for the second time for the privatization of Bharat Petroleum Corporation Limited (BPCL), the country’s second-largest refinery due to the COVID-19 epidemic. According to an official notice, the last date for submission of interest papers has been extended by more than a month from 31 June to 31 July.

The Union Cabinet approved the sale of the entire 52.98 percent stake in BPCL in November last year. On March 7, letters of interest (EOIs) were sought from those interested in purchasing the stake. The last date for submission of EOI was May 2, but it was extended to June 13. The government said on Wednesday that the deadline is being extended till July 31.

The Department of Investment and Public Asset Management (DIPAM) said in a notice, “In view of the requests of interested bidders and the current situation arising out of COVID-19, the last date for written inquiry on the Preliminary Information Memorandum (PIM) is again 23 June. It has been extended till 2020 and the last date for submission of EOI has been extended till July 31, 2020.

 

 

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