New Delhi: The Government is planning a major asset monetisation this year that may focus on spinning off loss-making subsidiaries of public sector enterprises (PSEs) into separate entities and selling these non-core assets to potential suitors under a competitive bidding process.
The proposed move aims to unlock value from potential idle assets of PSEs that could help Centre mobilise additional resources under its disinvestment programme. The government is targeting highest-ever disinvestment proceed of Rs 1,05,000 crore in FY20.
As per the latest official data, there are around 120 subsidiaries of 169 CPSEs and most of them are loss-making enterprises. Several of these would be identified by the disinvestment department DIPAM for sale under the strategic disinvestment route.
“Asset monetisation would be a tool that would be used extensively to mobilize disinvestment proceeds for the government. While selling core assets and revenue generating ventures of PSEs would be left to the board's of companies, all non-core assets and loss-making entities and subsidiaries could be pooled and spun off for sale by DIPAM (Department of Investment and Public Accounts Management). This is already being done in the case of loss-making PSEs under strategic sale route,” said a top government official privy to the development. (IANS)