Britain’s Cairn hopeful of solution in $1.2 billion-plus tax tussle with India
Cairn Energy Plc said on Sunday it had discussed multiple proposals with Indian government officials in recent days in an attempt to find a “swift solution” to a long-drawn-out tax dispute with the South Asian nation.
The government has tweaked the guidelines for strategic disinvestment, making security clearance mandatory for all bidders who put in price bids for buying a central public sector enterprise (CPSE).
DIPAM – the government agency managing the stake sale – had last week issued a proforma of the application for security clearance of the acquirers.
The government has tweaked the guidelines for strategic disinvestment, making security clearance mandatory for all bidders who put in price bids for buying a central public sector enterprise (CPSE). Now, financial bid would be opened by the evaluation committee on strategic disinvestment only after potential suitors get security clearance, an official told PTI.
The government has lined up sale of its majority stake along with management control in BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam in the next fiscal. The guidance note framed in 2018 on strategic disinvestment by the Department of Investment and Public Asset Management (DIPAM) said that the core group on disinvestment, headed by Cabinet Secretary, would decide on a “case-to-case” basis whether security clearance is required for the “highest bidder” for the sale.
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- GeM portal expects procurement of over Rs 1 lakh cr in FY22: CEO
If the highest bidder does not get security clearance, the next highest bidder was given the option to match the price offered by the highest bidder. An official said that the guidance note has been tweaked since it has come to notice that there was some ambiguity in the rules.
“Once financial bids are opened, the whole process of strategic sale almost reaches its closure. If after that, security clearance is not obtained by the highest bidder, then the whole process goes waste,” the official added. DIPAM – the government agency managing the stake sale – had last week issued a proforma of the application for security clearance of the acquirers.
According to the performa, any interest of more than 10 per cent in the bidding entity would require disclosures of parentage and beneficial ownership to get a security clearance. In case the acquirer is a sole bidder, then it has to share with the government details, like nationality, address, parentage, unique ID number of the country of residence and passport number, of its directors and partners.
GeM portal expects procurement of over Rs 1 lakh cr in FY22: CEO
Goods and services worth over Rs 1 lakh crore are expected to be procured from the public procurement portal GeM in 2021-22 on account of a sharp increase in buying activities by ministries like defence and PSUs, a senior official said.
Also a self-declaration regarding the nature and extent of presence/operation of the bidder in China and Pakistan, if any would have to be provided by them. In a strategic sale, bidders first put in expressions of interest or preliminary bids. After that due diligence is carried out by the government, while the bidders also get access to company’s books.
Following that eligible bidders are shared the share purchase agreement, following which price bids are put in by interested bidders. The government has budgeted to collect Rs 1.75 lakh crore from disinvestment in next fiscal, up from Rs 32,000 crore estimated to be mopped up in current fiscal.
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- CPSE strategic sale Govt makes security clearance mandatory for all bidders
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