Offer has to be within 10% of highest bid
Employees bidding for public sector units being divested will be given preference if their offer is within 10 per cent of the highest bid. They will be the first option if they match the highest bid.
According to the guidelines proposed by the disinvestment ministry, the turnover criterion will be waived for employees. They may team up with a bank, a venture capitalist or a financial institution to meet the net worth condition.
The bidding employees will not be allowed to form a consortium with other companies. They have to contribute at least 10 per cent of the financial bid.
If the bidding entity of the employees is a joint venture or a special purpose vehicle, employees must have a controlling stake in it. At least 200 employees, or 15 per cent of the staff strength, whichever is lower, will have to participate in the bid.
The proposed guidelines have been approved by the core group of secretaries on disinvestment, and will be taken up for clearance by the Cabinet committee on disinvestment.
As per the proposed guidelines, the term
