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Monday, Feb 18, 2002

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Decision on strategic sale of EIL soon

Our Bureau

NEW DELHI, Feb. 17

THE Union Government will soon take a decision to privatise Engineers India Ltd (EIL) through the strategic sale route.

"A proposal to privatise EIL by inducting a strategic partner has been submitted to the Cabinet Committee on Disinvestment for its approval," Government sources said.

The proposed strategic partner will have an appropriate role in the management of the company, they added.

EIL is a 100 per cent Government-owned company. The erstwhile Disinvestment Commission had suggested a strategic sale of 30 per cent of the Government's equity in EIL to a strategic partner along with an appropriate role in manage- ment.

It had also recommended that the Government should make a public offer of another 24 per cent of its equity to domestic investors after the induction of the strategic partner, 10 per cent to public sector oil companies and other PSUs and another 10 per cent to employees as ESOPs.

The commission was also of the view that the Government should hold the remaining 26 per cent stake in EIL for retaining its character as an Indian consultancy firm in strategic areas.

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