PSUs

Govt likely to pool land holding of loss-making PSUs to monetise asset

By IndianMandarins- 31 Jul 2018
591

govt-likely-to-pool-land-holding-of-loss-making-psus-to-monetise-asset

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.

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