Cabinet approves Laying Down Procedure and Mechanism for Asset Monetization of CPSEs/PSUs/other Government Organizations and Immovable Enemy Properties

Cabinet approves Laying Down Procedure and Mechanism for Asset Monetization of CPSEs/PSUs/other Government Organizations and Immovable Enemy Properties

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved laying down of institutional framework for monetization of identified non-core assets of the CPSEs under Strategic Disinvestment and assets relating to immovable enemy property under the custody of Custodian of Enemy Property for India (CEPI), MHA as per Section IV of Section 8-A of the Enemy Property Act, 1968. The institutional framework for monetization of the assets is also available for use to monetize other CPSEs, PSUs, other Government organizations and loss making/sick CPSEs.

The multi-layer institutional mechanism envisages constituting of Alternative Mechanism, Core Group of Secretaries on Asset Monetization and Inter-Ministerial Group as main decision bodies.

The exact model for monetization of any particular asset and model contact documents shall be approved by the competent authority based on the recommendations of the technical consultants, respective Administrative Ministry, CPSEs, NITI Ayog etc.

The independent External Monitor set up for Strategic Disinvestment shall oversee the process of asset monetization as well. The approved framework shall be reviewed after a period of two years for instituting any change including delegations on financial limits, if required.

Source : PMINDIA