Cabinet to soon consider framework for monetising assets of CPSEs
The Cabinet is likely to consider this month a framework for monetisation of assets held by CPSEs which have been selected for strategic sale.
The 'Asset Monetisation Framework', being drafted by the Department of Investment and Public Asset Management (DIPAM), will help the administrative ministries to fast track hiving off and sale of non-core assets of central public sector enterprises (CPSEs) under their administrative control.
To begin with, the guidelines would be applicable for those central public sector undertakings which are likely candidates for strategic disinvestment. However, any state-owned company which wants to sell its non-core assets too can follow the framework, an official said.
"The draft Cabinet note has been floated for inter-ministerial comments. We hope to place the asset monetisation framework before the Cabinet this month," the official told PTI.
The government already had already given in-principle approval for strategic sale of 24 state-owned companies.
These include Dredging Corporation of India, HLL Lifecare, Bharat Earth Movers Ltd, Units/JVs of ITDC, Bhadrawati, Salem and Durgapur units of SAIL, Nagarnar Steel Plant of NMDC, Central Electronics and Ferro Scrap Nigam.
DIPAM, after consulting ministries and CPSEs, has already identified huge tract of land and other assets of 9 state-owned companies which will be hived off before they are put on the block for strategic sale.
The nine CPSEs whose non-core assets have been identified for hiving off are Pawan Hans, Scooters India, Air India, Bharat Pumps & Compressors, Project & Development India Ltd (PDIL), Hindustan Prefab, Hindustan Newsprint, Bridge and Roof Co and Hindustan Fluorocarbons.
Most of the assets identified for separate disposal are land parcels and residential flats owned by the CPSEs.
With regard to Pawan Hans, the assets identified are Rohini Heliport and Bellman Hangar situated at Safdarjung Airport that was taken on lease from the Airports Authority of India (AAI).
For Air India, the assets to be hived off include at least four subsidiaries of the loss-making carrier, including Airline Allied Services Ltd (AASL) and Hotel Corporation of India (HCI).
Besides, the headquarter building of Air India in the national capital as well as various other land assets and buildings in different parts of the country would be hived off for separate disposal. Various art works and artefacts owned by the airline too would be put up on the block.
The Union Cabinet, chaired by Prime Minister Narendra Modi, in November last year gave 'in-principle' approval for sale of shares which are part of 'enemy property'.
Over 6.50 crore shares in 996 companies of 20,323 shareholders are under the custody of Custodian of Enemy Property of India (CEPI), under the Home Ministry. Of these 996 companies, 588 are functional/active companies -- 139 of these are listed, while 449 companies are unlisted.
In the current fiscal, the government has targeted to raise Rs 80,000 crore from PSU disinvestment. So far, it has raised Rs 34,142 crore through PSU share sale.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)