The Hindu Business Line : Punjab Govt invites EoIs again for divestment of Conware

THE Punjab Government on Monday invited fresh expressions of interest (EoIs) for the sale of its 100 per cent equity in Punjab State Container and Warehousing Corporation Ltd (Conware) to a strategic investor after addressing issues raised by the bidders in the earlier round.

"The Punjab Government had received a solitary price bid in the last round which was conditional as well as below the reserve price and was rejected," according to Ms Vinny Mahajan, Director, Disinvestment Directorate, Punjab Government.

During the earlier round of bidding, some of the pre-qualified bidders had raised concerns, which have now been taken care of. These included the land on which the company is situated and its borrowings. Conware is located on land taken on lease from Cidco (City and Industrial Development Corporation of Maharashtra Ltd), but a lease deed had not been executed in this regard. "A land lease deed has now been executed between Cidco and Conware for a substantially longer period. This will allay the apprehensions of the bidders over the leased land," Ms Mahajan said.

The Punjab Government has also decided to restructure the company's outstanding loan taken from Small Industries Development Bank of India and other banks/financial institutions at high rates of interest backed by Government guarantee.

"With these changes being put in place, the Government has re-invited EoIs from prospective buyers. The structure of the deal remains the same, it is an outright sale of the 100 per cent equity held by the State Government in Conware to a strategic investor," she said.

The company, which has been accumulating losses over the years, has started making profits from last year. "Conware made a profit of Rs 7 crore last year and it is expected that by the end of the current fiscal, it will break even," Ms Mahajan stated.

Bidders interested in acquiring the 100 per cent stake in the company would have to submit their EoIs along with request for qualification (RFQs) before March 22.

The Government has appointed RR Financial Consultants as the global advisor for the proposed disinvestment of Conware.

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