Moving ahead with its proposal to disinvest Engineering Projects (India) Ltd through merger with a similarly placed CPSE, the government is roping in consultants to estimate the market value of assets of the PSU. The Heavy Industries Ministry, which has administrative control over Engineering Projects (India) Ltd (EPIL), floated a request for proposal last week to select an asset valuer for the mini-ratna unit. The move came days after Finance Minister Arun Jaitley in his Budget speech outlined opportunities to strengthen CPSEs through consolidation, mergers and acquisitions. The asset valuer will carry out valuation of land & buildings, furniture & fixtures, civil infrastructure like roads, drains, compound wall, etc. and plant & machinery including electrical, stock inventory of spares in stores etc.
“The valuation is to be done keeping in view the objective of disinvestment through merger with similarly placed CPSE,” the Department of Heavy Industries said. The government is considering strategic disinvestment of 100 per cent paid-up equity capital of the Engineering Projects (India) Limited through merger with similarly placed CPSEs.
“We see opportunities to strengthen our CPSEs through consolidation, mergers and acquisitions. By these methods, the CPSEs can be integrated across the value chain of an industry. It will give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders,” Finance Minister Arun Jaitley had said while unveiling the Budget 2017-18 proposals.
Engineering Projects (India) Limited was incorporated on April 16, 1970. The shares of EPIL are held by the Government of India (99.98%) and six PSUs (0.02%). It is engaged in execution of large and multidisciplinary industrial & construction projects on turnkey basis and project management consultancy services. The company has 372 employees.