INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Finance Ministry is working out a mechanism under which CPSEs will have to part with a portion of the proceeds of non-core
asset sales as dividend to the exchequer, an official said
However, proceeds from the non-core asset sales of state-owned companies which are candidates for strategic disinvestment and funds raised
through sale of immovable enemy property will be treated as 'disinvestment proceeds', the official added
The Cabinet had last week approved laying down of procedure for monetisation of non-core assets of Central Public Sector Enterprises
(CPSEs), including those which are up for strategic sale
It had also cleared the proposal for sale of immovable enemy property
Niti Aayog has been asked to draw up a list of non-core assets of CPSEs, whether profit making or loss incurring, for possible monetisation
"Modalities for monetisation of non-core assets of healthy as well as sick CPSEs are being worked out so that a portion of the amount can
be realised by the government as dividend
Such a mechanism would provide incentive to the company to go ahead with asset sale with rewarding the government as promoter of these
CPSEs," the official told
The government has budgeted Rs 1.36 lakh crore as 'dividends and profits' in the next fiscal, up from Rs 1.19 lakh crore in 2018-19
The amount includes the money received as dividend from CPSEs and surplus transfers from the Reserve Bank
The official further said that while the procedure for monetisation of non-core asset is being finalised, the actual process is likely to
begin in the second half of the next fiscal
In order to expedite the process of asset sale, the Finance Ministry is planning to set up a special cell in the Department of Investment
and Public Asset Management (DIPAM) to coordinate with the concerned company and the administrative ministry as well as appoint transaction
For the next fiscal, the government has set a disinvestment target of Rs 90,000 crore, up from Rs 80,000 crore in the ongoing financial
