CPSEs under strategic sale asked to prepare list of non-core assets

New Delhi, Apr 21: The Finance Ministry has asked CPSEs identified for strategic sale to immediately prepare a list of assets and initiate dialogue with potential investors and bidders so that their non-core assets can be monetised quickly. Such CPSEs will have an option to either hive-off non-core assets to a Special Purpose Vehicle (SPV) or transfer sale proceeds of non-core assets to an escrow account to ring-fence the realised amount from the rest of the business, an official said.
The government has already identified about 35 CPSEs for strategic sale. These include Air India, Pawan Hans, BEML, Scooters India, Bharat Pumps Compressors, and Bhadrawati, Salem and Durgapur units of steel major SAIL.
The other CPSEs for which approvals are in place for outright sale include Hindustan Fluorocarbon, Hindustan Newsprint, HLL Life Care, Central Electronics, Bridge & Roof India, Nagarnar Steel plant of NMDC and units of Cement Corporation of India and ITDC.
The central public sector enterprises (CPSEs) have also been asked to ensure proper housekeeping of all assets with a view to ensuring better realisation at the time of sale.
“The CPSEs will be required to immediately start making an inventory of all assets, and ensure proper title deeds are available for sale. They will have to also interact with potential investors and other stakeholders, including state government,” an official said.
They will also be required to give suggestions regarding the mode of monetisation of the identified non-core assets.
The official further said that non-core assets should ideally be hived off to an SPV, specially created through a demerger to hold and monetise such assets. However, since the transfer of assets to an SPV may involve time and issues like stamp duty, the CPSEs would be permitted to dispose the identified non-core assets on a case-by-case basis with the approval of the inter-ministerial group (IMG).