RETIRED directors and senior scientists of the Council of Scientific and Industrial Research (CSIR) have written a letter to the Ministry of Finance expressing concerns about the sale of its 100 per cent stake in Central Electronics Limited to a private entity.
The Central Electronics Limited (CEL), set up by the CSIR, was a public sector enterprise commercialising indigenous technological developments of public entities and publicly funded research organisations. The Government, in November 2021, cleared the sale of 100 per cent of its stake in CEL to Nandal Finance and Leasing Private Limited for Rs. 210 crores.
Subsequently, the letter of intent for privatisation was put on hold by the Government, while an inter-ministerial group was examining certain allegations, as reported by The Wire.
A group of thirty-five retired directors and senior scientists of the Council of Scientific and Industrial Research (CSIR) have, on Tuesday, written a letter to the Ministry of Finance (MoF) expressing their concern regarding the sale of CEL.
Competency of the Acquirer
A concern of utmost importance raised by the signatories is that Nandal Finance has no competence and can harm CEL’s technological capabilities. As per the signatories’ analysis of Nandal’s books of accounts, the company has no fixed assets, no land & buildings, computers, laptops, etc., and is a trading company with no significant resources.
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The letter submits, “The financial position of M/s Nandal Finance & Leasing Private Limited is not sound. 99.96 per cent of its shares are held by M/s Premier Furniture & Interiors Private Limited formed on Oct 23, 2007. During FY 2019-2020 and FY 2018-2019 its account books show loss. Not even a single employee has completed five years.
Strategic Sector Enterprise
The letter further states that the signatories are “concerned about the future of Central Electronics Limited (CEL). CEL is known for the development of products through its own efforts and in close association with the premier National and International Laboratories including Defense Laboratories. In recognition, CEL has been awarded a number of times with prestigious awards including National Award for R&D by the Department of Scientific and Industrial Research (DSIR).
“As of October 31, 2021, CEL has pending orders worth Rs 1592 crores. With these orders alone, CEL would give GoI a gross profit of about Rs 730 crores. As of March 31, CEL had a land in possession making for a valuation of Rs 440 Crores as per the circle rate.”, states the letter.
Irrespective of whether the land forms a part of the bidding process, the signatories submit that the intrinsic value of CEL’s assets, tangible and intangible, including its brand value built over the course of four decades and the technical capabilities of its highly professional staff, including 130 engineers, cannot be ignored.
With respect to strategic sector enterprise, the signatories submit, “CEL has been instrumental in putting up solar photovoltaic plants in prestigious buildings like Rashtrapati Bhavan and many archaeological monuments. It had developed deep water solar pump sets for agricultural applications and developed flexible solar panels for areas like Siachen and other remote defense locations for communication equipment. CEL has also put-up solar facilities in many African countries like Sudan, Mozambique, Senegal, and Mali and so on.”
While the technological achievements of CEL assume prime importance for putting up large capacity solar generating facilities in the country, the letter also states that it had a number of rapidly-moving initiatives ongoing at present as well as projects underway for indigenisation in railway signaling related areas.
Further, the signatories are “puzzled that when the Department of Electronics is planning to invest Rs 76000 Crores for the establishment of over 20 semiconductor design, components manufacturing and display fabrication units over the period of next six years, why the empowered group of the Cabinet Committee on Economic Affairs is wanting to privatize CEL.”
In order to achieve the status of an Aatmanirbhar Bharat, CEL needs to be retained in the public sector, submit the signatories. They requested the Government to revert the decision and retain and develop CEL as a public sector undertaking to allow the engineers and scientists of India to commercialise and contribute to indigenous technological developments.
The names of the signatories are as follows:
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T.S.R Prasad Rao, Former Director, CSIR-IIP
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Vikram Kumar, Director (Retired), CSIR-NPL
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H. R Bhojwani, Former Head, Research Planning and Business Development, CSIR HQ
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R K Bhandari, Former Director CSIR-CBRI
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Paul Ratnaswamy, Former Director, CSIR-NCL
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Ehrlich Desa, Former Director, CSIR-NIO
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Nagesh Iyer, Former Director, CSIR-SERC
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P G Rao, Former Director CSIR-NEIST
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Ashok Jain, Former Director, CSIR-NISTADS
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Dinesh Abrol, Former Chief Scientist CSIR-NISTADS
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Rajender Prasad, Former Head, International Scientific Affairs CSIR HQ
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Naresh Sahajpal, Former Head, Research Planning and Business Development, CSIR HQ
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Ram Prasad, Former Scientist G, International Affairs, CSIR HQ
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B.C.Sharma, Former Scientist F, International Scientific Affairs CSIR HQ
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Chandra Gupt, Former Scientist G, Human Resource Development, CSIR HQ
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Arun Gomkale, Former Scientist G, IPR Division, CSIR HQ
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Raghuvansh Saxena, Former Scientist G, CSIR HQ
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H.Purushottam, Former Scientist , CSIR- CLRI, Former CMD NRDC
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Tilak Basu, Former Scientist G, CSIR-CGCRI
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S N Sharma, Former Scientist G, CSIR-IIP
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B S Rawat, Former Scientist G, CSIR-IIP
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O N Anand, Former Scientist G, CSIR-IIP
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Mathew Abraham, Former Scientist G, CSIR-IIP
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Lal Ji Dixit, Former Chief Scientist, CSIR-IIP
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Amitabh Basu, Former Chief Scientist, CSIR-NPL
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Gauhar Raza, Former Chief Scientist, CSIR-NISCAIR
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P V S Kumar, Former Chief Scientist, CSIR-NISCAIR
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Pardosh Nath, Former Chief Scientist CSIR-NISTADS
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B V Reddy, Former Principal Scientist, CSIR-NPL
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G.N.Kulshrestha, Former Scientist G, CSIR-IIP
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Dinesh Chandra, Former Scientist G, CSIR-IIP
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B.S.Saini, Former Scientist G, CSIR-IIP
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Dr. Dhruv Raina Former Scientist CSIR-NISTADS, Currently Professor JNU
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Dr. Subodh Mahanti, Former Scientist CSIR-NISTADS, Retired as DScientist G Vigyan Prasar
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Bapuji Maringanti, Former Chief Scientist RRL Bhuvneshwar.