New Delhi: The government has given public sector undertakings (PSUs) 12 months to monetise non-core assets that will be identified by a ministerial panel headed by Finance Minister Arun Jaitley. If PSUs fail to do that, the ministry may restrict budgetary allocations to these state-owned companies. All of this was spelt out in guidelines for monetisation of non-core assets of CPSEs and immovable enemy properties released by the Department of Investment and Public Asset Management (DIPAM) on Monday.
Inter-ministerial group will identify non-core assets
As per the guidelines, an inter-ministerial group (IMG), chaired by the Secretary of DIPAM, will identify the non-core assets of the CPSEs on the basis of the recommendations of Niti Aayog. However, a final call will be taken by the panel headed by the Finance Minister. This panel is going to be called Alternative Mechanism and it will comprise of the finance minister, road transport minister and the minister of concerned administrative ministry.
After this panel approves the decision of the IMG, it needs to be completed within 12 months of approval. The money raised from the sale of these assets will go to the Centre’s disinvestment proceeds.
‘Budgetary support will come only after asset monetisation’
“The Department of Expenditure and Department of Economic Affairs may consider any proposal from the CPSE/administrative ministry for budgetary support only after looking at the achievement of asset monetisation target by the CPSE. Performance of contract management will be considered before sanctioning any government budgetary support,” the guidelines said.
Having said that, the guidelines also leave some room for PSUs to seek some relaxation from the 12-month deadline for the sale of non-core assets.
On enemy property
With respect to the immovable enemy property, the guidelines stipulate the assets will have to be identified for disposal in consultation with the stakeholders and the respective state governments.