BUSINESS

Public sector enterprises to get 12 months to sell non-core assets

State-run companies will have 12 months to monetise non-core assets identified by a ministerial panel headed by the finance minister, failing which the finance ministry may restrict budgetary allocations to the CPSEs.

The Department of Investment and Public Asset Management (DIPAM) on Monday issued guidelines for monetisation of non-core assets of CPSEs and immovable enemy properties, following a Cabinet decision in February.

According to the guidelines, an inter-ministerial group (IMG) chaired by the secretary of DIPAM will identify the non-core assets of the CPSEs on its own, and also on the basis of recommendations of the Niti Aayog. The final call will, however, be taken by the finance minister-headed panel.

Once the Alternative Mechanism, comprising the finance minister, road transport minister and the minister of the administrative ministry concerned approves the assets for monetisation, it should be completed within 12 months from the date of approval.

This will be the target to be achieved by the CPSEs as part of the memorandum of understanding with the Department of Public Enterprises (DPE). “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.

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