Divestment: Questions still remain on privatisation and asset monetisation

While DIPAM can still meet or come close to the divestment target of Rs 1.05 trillion, it may not be on the back of strategic sales or asset monetisation

In December 2016, the Narendra Modi cabinet had decided to sell surplus land held by four pharma companies - Hindustan Antibiotics Limited (HAL), Indian Drugs & Pharmaceuticals Limited (IDPL), Rajasthan Drugs and Pharmaceuticals Ltd (RDPL) and Bengal Chemicals & Pharmaceuticals Ltd (BCPL).

The idea was to sell the real estate through open competitive bidding to other government agencies and clear the outstanding dues payable to employees from the proceeds. The outstanding liabilities included unpaid salaries and voluntary retirement scheme dues.

Then, earlier this month, the cabinet decided to shell out Rs 330.35 crore from its own coffers to pay the