Firm to monetise CPSE land assets
- October 18, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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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.