Niti Aayog readies the list for PSU asset monetisation

New Delhi: Paving the way for big-ticket asset monetisation in the public sector, Niti Aayog has identified over 50 assets, which include land and industrial plants of public sector undertakings (PSUs) like NTPC Limited, Cement Corporation of India, Bharat Earth Movers Ltd. and Steel Authority of India Ltd that could be put on the block. While noting that the government is looking at asset monetisation, a government official said that Niti Aayog had sent a list to the Department of Investment and Public Asset Management (DIPAM). The source added that the list will help PSUs and their administrative ministries in kickstarting the sale process.

NTPC's Badarpur plant and SAIL's brownfield projects on the list

The list has been drawn up by Niti Aayog CEO Amitabh Kant in consultation with the secretaries of nodal ministries. "We will keep coming up with new lists as and when required over the course of time," another source said. For now, the assets that are on the list include NTPC's Badarpur plant (which is closed and has about 400 acres of land), and brownfield projects of companies including SAIL.

Govt raised Rs 2,350 cr in the first 2 months of FY20

The total tally for disinvestment proceeds in the first two months of financial year 2019-20 stands at Rs 2,350 crore. This year, the government has set for itself a target of Rs 90,000 crores. In 2018-19, the government raised Rs 84,972.16 crores against the budgeted target of Rs 80,000 crores.

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The backdrop

The DIPAM has already identified and hived off assets from PSUs such as Scooters India, Bharat Pumps & Compressors, Project & Development India, Hindustan Prefab, Hindustan Newsprint, Bridge & Roof Co. and Hindustan Fluorocarbons. These firms are now up for strategic sale. In February, the Cabinet had given its nod to the setting up of an institutional framework that will be used for monetisation of non-core assets of state-owned companies under strategic disinvestment.

The government is planning on restarting the institution, called Alternate Mechanism, to speed up the disinvestment process. Once the panel approves monetisation of an asset, it has to be completed within a year. The government has approval for the strategic sale of 24 companies, including Air India.

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