Centre aims to monetise land owned by CPSEs

BIG BLURB ON THE SIDE

In 2010, the govt had planned to raise Rs 2.10 lakh cr — Rs 1.20 lakh cr from selling stake in PSUs and Rs 90,000 crore from stake sale in LIC and banks. But few initiatives materialised due to the pandemic and the government had to settle for Rs 19,499 cr

Tribune New Service

New Delhi, February 1

Apart from two banks and one life insurance company, the government has also targeted the gradual sale of all PSUs with an eye on their surplus land to raise Rs 1.75 lakh crore in 2021-22. To monetise land owned by CPSEs, a special purpose vehicle (SPV) would be developed.

Finance Minister Nirmala Sitharaman said except for four strategic areas, PSUs in all other sectors would be divested. The policy framework was announced in July last year and it was cleared by the Union Cabinet a couple of days ago. Last year, the government had planned to raise Rs 2.10 lakh crore — Rs 1.20 lakh crore from selling stake in PSUs and Rs 90,000 crore from stake sale in LIC and banks. But few initiatives materialised due to the pandemic and the government had to settle for Rs 19,499 crore.

The Finance Minister said a beginning would be made in the next fiscal with the sale of IDBI Bank, BPCL, Shipping Corporation, Container Corporation, Neelachal Ispat Nigam etc. Niti Aayog has been asked to work on the next list of PSUs for strategic disinvestment.

States are being encouraged to sell PSUs with a revised mechanism for fast-tracking the closure of loss- making PSUs and an incentive package. Both are in the works, Sitharaman announced. She remained undeterred despite the government’s inability to even remotely meet the target of Rs 2.1 lakh crore in the last Budget from privatisation and the sale of minority stakes in PSUs.

Sitharaman also said the NCLT framework would be strengthened to ensure faster resolution of cases. “The e-court system shall be implemented and an alternative method of debt resolution and special framework for MSMEs shall be introduced,’’ she said.