NITI AAYOG TO DRAW UP LIST OF NON-CORE ASSETS OF CPSES FOR MONETISATION
05, Mar 2019
The NITI Aayog has been tasked with drawing up a list of non-core assets of various CPSEs, both healthy and sick ones, as a first step towards Finance Ministry’s plan to monetise such assets and unlock value to shareholders.
- In 2016, NITI was asked to draw up a list of CPSEs which could go in for strategic sale. It had identified about 35 CPSEs which could go in for outright sale.
- This is part of the overall plans of the government to lay down a procedure and mechanism for monetisation of non-core assets of central public sector undertakings (CPSEs), that include mainly land and building.
- NITI Aayog will draw up the list of non-core assets owned by CPSEs, which can be sold separately after discussion with a consultative group comprising officials from administrative ministries, Department of Economic Affairs, Department of Investment and Public Asset Management (DIPAM).
- The nine CPSEs whose non-core assets have been identified for hiving off are Pawan Hans, Scooters India, Air India, Bharat Pumps & Compressors, Project & Development India Ltd (PDIL), Hindustan Prefab, Hindustan Newsprint, Bridge and Roof Co and Hindustan Fluorocarbons. In the current financial year, the government has set a disinvestment target of Rs 80,000 crore, which includes strategic and minority stake sale in CPSEs. The government already had already given in-principle approval for strategic sale of 24 state-owned companies.
- So far, this fiscal, the government has raised over Rs 56,064 crore by divesting stakes in state-owned companies.
- The National Institution for Transforming India, also called NITI Aayog, was formed via a resolution of the Union Cabinet on January 1, 2015. NITI Aayog is the premier policy ‘Think Tank’ of the Government of India, providing both directional and policy inputs.
- While designing strategic and long-term policies and programmes for the Government of India, NITI Aayog also provides relevant technical advice to the Centre and States.
- The Government of India, in keeping with its reform agenda, constituted the NITI Aayog to replace the Planning Commission instituted in 1950. This was done in order to better serve the needs and aspirations of the people of India. An important evolutionary change from the past, NITI Aayog acts as the quintessential platform of the Government of India to bring States to act together in national interest, and thereby fosters Cooperative Federalism. At the core of NITI Aayog’s creation are two hubs – Team India Hub and the Knowledge and Innovation Hub. The Team India Hub leads the engagement of states with the Central government, while the Knowledge and Innovation Hub builds NITI’s think-tank capabilities. These hubs reflect the two key tasks of the Aayog.
- NITI Aayog is also developing itself as a State-of-the-Art Resource Centre, with the necessary resources, knowledge and skills, that will enable it to act with speed, promote research and innovation, provide strategic policy vision for the government, and deal with contingent issues.