Govt drafting framework to fast-track sale of non-core businesses of CPSEs

The Finance Ministry is drafting a framework for ministries and departments which they would follow while selling non-core assets of CPSEs, an official said.

The 'Asset Monetisation Framework', which is being drafted by the Department of Investment and Public Asset Management (DIPAM), will help the administrative ministries to fast-track hiving off and sale of non-core assets of central public sector enterprises (CPSEs) under their administrative control.

"The framework will act as broad guidelines for the ministries to identify non-core assets and proceed with their sale process in an efficient and transparent manner," the official told PTI.

To start with, DIPAM, after consulting ministries and CPSEs, has already identified huge tract of land and other assets of nine state-owned companies which will be hived off before they are put on the block for strategic sale.

The sale process of these assets has to be taken forward by the concerned administrative ministries, the official said.

The nine CPSEs whose non-core assets have been identified for hiving off are Pawan Hans, Scooters India, Air India, Bharat Pumps & Compressors, Project & Development India Ltd (PDIL), Hindustan Prefab, Hindustan Newsprint, Bridge and Roof Co and Hindustan Fluorocarbons.

Most of the assets identified for separate disposal are land parcels and residential flats owned by the CPSEs.

With regard to Pawan Hans, the assets identified are Rohini Heliport and Bellman Hangar situated at Safdarjung Airport that was taken on lease from the Airports Authority of India (AAI).

For Air India, the assets to be hived off include at least four subsidiaries of the loss-making carrier, including Airline Allied Services Ltd (AASL) and Hotel Corporation of India (HCI).

Besides, the headquarter building of Air India in the national capital, as well as various other land assets and buildings in different parts of the country, would be hived off for separate disposal. Various artworks and artefacts owned by the airline too would be put up on the block.

In the current fiscal, the government has set a disinvestment target of Rs 800 billion, which includes strategic and minority stake sale in CPSEs.

The government already had already given in-principle approval for strategic sale of 24 state-owned companies.

These include Dredging Corporation of India, HLL Lifecare, Bharat Earth Movers Ltd, Units/JVs of ITDC, Bhadrawati, Salem and Durgapur units of SAIL, Nagarnar Steel Plant of NMDC, Central Electronics and Ferro Scrap Nigam.

So far this fiscal, the government has raised over Rs 92.20 billion by divesting stakes in state-owned companies.

Last year, the government had mopped up over Rs 1.03 trillion from PSU disinvestment. This was aided by the country's oldest gas producer ONGC's Rs 369.15 billion acquisition of government-owned fuel retailer Hindustan Petroleum.