The
government is working on a new framework to pool land owned by loss making
public sector companies. This land will be handed over to state run developers
such as NBCC (India) Ltd to develop it and realise value or sell it through a
bidding process. Sources said a cabinet note is
being prepared by department of public enterprises (DPE) on status of
loss-making firms. The details are being prepared about their assets and
closure approvals. The government had come up with guidelines on closure of
loss making companies in 2016 under which a land management agency (LMA) was to
be appointed by the administrative ministry or the CPSE’s board to assist in
disposal of land. DPE
has already sought information from administrative ministries and the status
report on any litigation holding up closure among other details the above
quoted official said, adding that most central public-sector enterprises (CPSE)
have given details of both movable and immovable assets. About
30 sick CPSEs have been identified for closure, of which over half-a-dozen have
received cabinet nod. These include the Hindustan Cable, Tyre Corporation, HMT
Watches, Birds Jute and Export Limited (BJEL) and Central Inland Water
Transport Corporation.
An
oversight committee will be set up in NITI Aayog to fast track the closure of
sick CPSEs.
According to this guideline, the land management agency will also be a CPSE
such as NBCC and will get a fee of 0.5 per cent of value realised from disposal
of such land subject to a cap of Rs 1 crore. The LMA will determine the current
land use and its suitability for industrial, manufacturing or some other
purposes.
The
government is working on a new framework to pool land owned by loss making
public sector companies. This land will be handed over to state run developers
such as NBCC (India) Ltd to develop it and realise value or sell it through a
bidding process.
Sources said a cabinet note is
being prepared by department of public enterprises (DPE) on status of
loss-making firms. The details are being prepared about their assets and
closure approvals. The government had come up with guidelines on closure of
loss making companies in 2016 under which a land management agency (LMA) was to
be appointed by the administrative ministry or the CPSE’s board to assist in
disposal of land.
According to this guideline, the land management agency will also be a CPSE
such as NBCC and will get a fee of 0.5 per cent of value realised from disposal
of such land subject to a cap of Rs 1 crore. The LMA will determine the current
land use and its suitability for industrial, manufacturing or some other
purposes.
DPE has already sought information from administrative ministries and the status report on any litigation holding up closure among other details the above quoted official said, adding that most central public-sector enterprises (CPSE) have given details of both movable and immovable assets.
About 30 sick CPSEs have been identified for closure, of which over half-a-dozen have received cabinet nod. These include the Hindustan Cable, Tyre Corporation, HMT Watches, Birds Jute and Export Limited (BJEL) and Central Inland Water Transport Corporation.
An oversight committee will be set up in NITI Aayog to fast track the closure of sick CPSEs.