| In the case of sale of enterprise, the prospective buyers will submit quotation according to the terms
and conditions of the tender. Bidder shall have to accept all long-term loans against the fixed assets.
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| Value of stocks and stores will be adjusted with the short-term bank liabilities and the buyer will
accept the bank loan equivalent to the value of stocks and stores. If the value of stocks and stores
exceeds the bank loans, the excess will be payable to the Government by the buyer either in cash or
within one year along with a simple interest of 10% per annum. Bank loans in excess of the value of
stocks and stores will be taken over by the Government.
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| Value of current assets such as sundry debtors, advances etc. will be payable to the Government by
the buyer either in cash or within one year along with a simple interest rate of 10 % per annum.
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| In the cases mentioned above the buyer will have to provide irrevocable bank guarantee
without recourse in case the payment is not made in cash.
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| Short-term liabilities such as, sundry creditors, claims of employees and workers and income taxes
etc. accrued before the transfer of the enterprise will be taken over by the Government.
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| As regards employees of the tendered enterprise (if it is a running one) the Corporation and the buyer
will jointly determine the number of redundant employees in the light of technical and operational
feasibility. Retained employees, however, will be offered new terms and conditions by the buyer.
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| Buyers will be liable to pursue all pending court cases.
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| Land under the enterprise will be used normally for establishment and expansion of industries. A
substantial amount of unutilized but developed land can, however, be used for other productive
activities.
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| In case of sale of Government-owned shares in different companies the prospective buyers will
submit quotations for the total number of shares offered for sale. The company whose shares are
offered for sale, will repay all quasi-equity loans of the Government and dues of the Corporations
witiin a period of 10 years in 6-monthly installment carrying a simple interest of 10% per annum
and will submit an irrevocable bank guarantee without recourse from a scheduled bank. In addition
to the above, the buyer will also give a personal irrevocable bank guarantee without recourse for the
above quasi-equity loans and dues or will keep the share certificates of all the shares bought by him,
under the custody of the Government.
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| While implementing the policy of privatization, efforts will be made to make the ownership of the
industrial enterprises as broad-based, as possible.
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