Niti Aayog has been tasked with drawing up a list of non-core assets of various CPSEs, both healthy and sick ones, as the first step towards Finance Ministry’s plan to monetise such assets and unlock value to shareholders.
This is part of the overall plans of the Government to lay down procedure and mechanism for monetisation of non-core assets of central public sector undertakings (CPSEs), which include mainly land and building.
According to a senior official on grounds of anonymity, “Niti Aayog will draw up the list of non-core assets owned by CPSEs which can be sold separately after discussion with a consultative group comprising officials from administrative ministries, Department of Economic Affairs, Department of Investment and Public Asset Management (DIPAM).”
The process would take about six months’ time, the official added.
The report of Niti Aayog will be taken up by the alternative mechanism on disinvestment, headed by Finance Minister Arun Jaitley, following which the CPSE and the respective administrative ministry will further proceed with the monetisation process, the official added.
“So far the disinvestment process was confined to corporate level. Now, it will go one step down and monetise non-core assets of CPSEs to unlock wealth and generate value on equity for shareholders,” the official added.
It is pertinent to mention here that in 2016 Niti Aayog was also asked to draw up a list of CPSEs which could go in for strategic sale. It has already identified about 35 CPSEs which could go in for outright sale.
The Union Cabinet had last week 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).