Cabinet clears procedure, mechanism to monetise enemy properties, CPSE's non-core assets

The Cabinet Thursday approved laying down procedure and mechanism for monetisation of non-core assets of CPSEs and immovable enemy properties assets.

"The Union Cabinet has approved laying down of institutional framework for monetisation of identified non-core assets of the CPSEs under strategic disinvestment and assets relating to immovable enemy property under the custody of Custodian of Enemy Property for India (CEPI)," an official statement said.

Enemy property refers to the assets which were left behind by people who migrated to Pakistan or China and are no longer citizens of India.

The institutional framework for monetisation of the assets could also be used by other CPSEs, PSUs, government organisations and loss-making or sick CPSEs.

"The multi-layer institutional mechanism envisages constituting of alternative mechanism, core group of secretaries on asset monetisation and inter-ministerial group as main decision bodies," the statement, issued after the meeting of the Cabinet, said.

The 'Asset Monetisation Framework', 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.

The exact model for monetisation of any particular asset and model contact document shall be approved by the competent authority based on the recommendations of the technical consultants, respective administrative ministry, CPSEs, Niti Aayog, it added.

The independent external monitor set up for strategic disinvestment shall oversee the process of asset monetisation as well.

The approved framework shall be reviewed after 2 years for instituting any change including delegations on financial limits, the statement added.

DIPAM, after consulting ministries and CPSEs, has already identified huge tract of land and other assets of nine 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.

In the current financial year, the government has set a disinvestment target of Rs 80,000 crore, which includes strategic and minority stake sale in CPSEs.

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.

So far this fiscal, the government has raised over Rs 56,064 crore by divesting stakes in state-owned companies.