The NITI Aayog has been tasked with drawing up a list of non-core assets of various CPSEs, both healthy and sick ones, as a 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 a procedure and mechanism for monetisation of non-core assets of central public sector undertakings (CPSEs), that include mainly land and building.
“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),” an official told PTI.
The process would take about six months’ time, the official added. The report by NITI Aayog would be taken up by the alternative mechanism on disinvestment, headed by Finance Minister Arun Jaitley, following which the CPSE and the Ministry concerned would proceed with the monetisation process, the official added.
“So far, the disinvestment process was confined to the 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.
In 2016, NITI was asked to draw up a list of CPSEs which could go in for strategic sale. It had identified about 35 CPSEs which could go in for outright sale.