The Department of Investment and Public Asset Management (DIPAM) is working on restructuring and asset monetisation of public sector enterprises for better management and competitiveness in the present world, Finance and Corporate Affairs Minister Nirmala Sitharaman informed the Lok Sabha on Monday.
"Cabinet in its meeting on 28.02.2019 approved procedure and mechanism for asset monetisation of Central Public Sector Enterprises (CPSEs) and public sector undertakings (PSUs)/other government organisations and immovable enemy properties, she said.
The policy framework lays down the institutional framework for the monetisation of the following: identified non-core assets of CPSEs under strategic disinvestment; and immovable enemy property under the custody of Custodian of Enemy Property (CEPI), MHA as per sub-section 6 of Section 8A of the Enemy Property Act, 1968.
The objective of the asset monetisation programme of the Government of India is to unlock the value of investment made in public assets which have not yielded appropriate or potential returns so far, she added.
As regards restructuring of PSEs, DIPAM issued guidelines on the Capital Restructuring of Central Public Sector Enterprises on 27.05.2016. These guidelines lay down general principles and mechanism for the capital restructuring of CPSEs regarding payment of dividend, issue of bonus shares, buyback of shares by CPSEs and shall apply to all corporate bodies where the government of India and/or government controlled one or more body corporate have the controlling interest.
As per the Budget Estimate for 2019-20, as announced in the Interim Budget, estimates for disinvestment proceeds has been kept at Rs 90,000 crore, further informed Sitharaman.