Finance Ministry Seeks Details Of Land Parcel From CPSEs For Asset Monetisation
An empty water tank stands on farmland near the village of Khardewadi in this aerial photograph taken in Beed district, Maharashtra, India. (Photographer: Dhiraj Singh/Bloomberg)

Finance Ministry Seeks Details Of Land Parcel From CPSEs For Asset Monetisation

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The finance ministry has written to all ministries asking them to seek details of land parcels from central public sector enterprises under their administrative control for monetisation, according to sources.

The exercise is part of the government's efforts to meet disinvestment target of Rs 1.05 lakh crore for the current financial year.

The Department of Investment and Public Asset Management has already empanelled 11 consultancy firms for monetising land and properties of CPSEs, public sector undertakings, and other government organisations.

The list of empanelled firms includes RITES Ltd, Boston Consulting Group, Anarock Property Consultants Pvt Ltd, Cushman & Wakefield and Feedback Infra Pvt Ltd. DIPAM has asked all ministries and departments to get details from CPSEs under their administrative control of those land parcels for monetisation which are free from any encumbrances, litigation, and encroachment, the sources said.

It also asked the ministries to seek a board-approved monetisation plan of CPSEs for a smooth sale. According to the sources, the land parcel including that of enemy property and residential quarters could be sold by bunching up together or separately on a case-to-case basis.

Over 6.5 crore shares in 996 companies of 20,323 shareholders are under the custody of Custodian of Enemy Property for India, under the home ministry. Of these 996 companies, 588 are functional or active companies -- 139 of these are listed, while 449 companies are unlisted.

The government has set a target of mobilising Rs 1.05 lakh crore from disinvestment proceeds and achieving this has become more critical after it doled out Rs 1.45 lakh crore stimulus by way of a cut in corporate tax. The proceeds from disinvestment will be critical for the government to stick to its target of keeping fiscal deficit at 3.3 percent of the gross domestic product in the current financial year.

Earlier this month, the Cabinet approved a new process of strategic disinvestment with a view to expediting privatisation of select PSUs. The Cabinet headed by Prime Minister Narendra Modi gave nod for sale of 53.29 percent government stake in Bharat Petroleum Corp Ltd and its 63.75 percent stake in Shipping Corporation of India, 30 percent in Container Corporation of India, 100 percent NEEPCO and 75 percent in THDC.

Officials said strategic sale may involve two-stage bidding beginning with an expression of interest or a preliminary intent showing bid, and a final financial bid. Pre-bid meetings with likely bidders and roadshows to attract potential investors will form part of the process to provide clarity on every aspect of the stake sale.

Also read: India Mulls Stake Sale In Three Privatised Firms To Surpass Divestment Target: Exclusive

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