Firm to monetise CPSE land assets

Subject – Economy

Context – Fin Min to seek Cabinet nod to set up firm to monetise some CPSE land assets

Concept –

The finance ministry will soon move the Cabinet to seek approval for setting up a company for transfer and subsequent monetisation of land and non-core assets of privatisation-bound CPSEs.
A special purpose vehicle (SPV) in the form of a company would be set up to hold these assets which would be monetised to fetch value to the exchequer.
Post Cabinet nod, the Department of Public Enterprises (DPE), which is now under the Ministry of Finance, will be entrusted with doing the asset monetisation.
The government is targeting to conclude strategic sale of BPCL, Shipping Corporation of India, IDBI Bank, BEML, Pawan Hans, NeelachalIspat Nigam Ltd, this fiscal.
In the 2021-22 Budget, the government announced the PSE (public sector enterprises) privatisation policy as per which all PSUs will be privatised, barring four strategic sectors of Atomic energy, Space and Defence; Transport and Telecommunications; Power, Petroleum, Coal and other minerals; and Banking, Insurance and financial services.
- In these strategic sectors, the government will retain only a bare minimum number of PSUs.