#PSU Disinvestment and Asset Monetisation

[dhallblogs]

Government Targets ₹50,000 Crore from PSU Disinvestment and Asset Monetisation in FY25.

New Delhi: The government plans to raise ₹50,000 crore through disinvestment and asset monetisation of public sector undertakings (PSUs) in the fiscal year 2024-25.

ALSO READ MORE- https://apacnewsnetwork.com/2024/07/government-targets-%e2%82%b950000-crore-from-psu-disinvestment-and-asset-monetisation-in-fy25/

[net4news]

Finance ministry gets bigger: Department of Public Enterprises now part of it - Net4News

NEW DELHI: The government has merged the Department of Public Enterprises (DPE) with the finance ministry to give it a better control over state-owned firms and facilitate its ambitious privatisation programme. Finance ministry will now have six departments while DPE's hereto parent ministry, the ministry of heavy industries and public enterprises will now be called the ministry of heavy industries. Previously, the disinvestment ministry - created under the Atal Bihari Vajpayee government - was merged with the Finance Ministry and is now a department under it. Also, Foreign Investment Promotion Board (FIPB) was abolished and administration of foreign investments was given to the Finance Ministry (FinMin). The shift of DPE to the finance ministry will help in efficient monitoring of the capital expenditure, asset monetisation and financial health of the Central Public Sector Enterprises (CPSEs). "Ministry of Finance (Vitta Mantralaya), after the sub-heading (v) Department of Financial Services (Vittiya Sewayen Vibhag), following sub-heading shall be inserted, namely:- (vi) Department of Public Enterprises (Lok Udyam Vibhag)" as per the Cabinet Secretariat notification dated July 6, 2021. The rejig comes ahead of Cabinet expansion slated later in the day. The gazette notification issued said these rules may be called the government of India (Allocation of Business) Three Hundred and Sixty First Amendment Rules, 2021. "They shall come into force at once," the notification said. Presently, the finance ministry has five departments -- Economic Affairs, Revenue, Expenditure, Investment and Public Asset Management and Financial Services. With the addition, this will be the sixth department under the finance ministry. Giving details of the functions performed by the DPE, the notification said coordination of matters of general policy affecting all Public Sector Enterprises (PSEs), evaluation and monitoring the performance of PSEs, including the memorandum of understanding mechanism, review of capital projects and expenditure in CPSEs. Besides, the DPE frames measures aimed at improving performance of CPSEs and other capacity building initiatives of PSEs, rendering advice relating to revival, restructuring or closure of PSEs including the mechanisms, counselling, training and rehabilitation of employees in CPSEs under Voluntary Retirement Scheme and categorisation of CPSEs including conferring 'Ratna' status, among others. The heavy industries ministry will continue to be the administrative ministry related primarily to the capital goods sector. As many as 44 CPSEs including Maruti Udyog Limited, BHEL, Cement Corporation, Scooters India, HMT and various other subsidiaries would be under the Ministry of Heavy Industries. Many companies under the ministry are sick and up for sale under the disinvestment programme of the government. Finance minister Nirmala Sitharaman in her Budget 2021-22 already announced that a revised mechanism for fast-tracking closure of loss making PSUs would be worked out and an incentive package would be developed to incentivise states to sell stake in state PSUs. To monetise lands owned by CPSEs, a special purpose vehicle (SPV) would be developed. She also announced a big-ticket privatisation agenda, including privatisation of two public sector banks and one general insurance company to garner Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions during 2021-22. As part of the divestment strategy for the financial sector, the government has decided to go for a mega initial public offering (IPO) of Life Insurance Corporation of India (LIC) and residual stake sale in IDBI Bank during the financial year beginning April. Besides, strategic sale of Bharat Petroleum Corporation Ltd (BPCL), Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd, Pawan Hans, Air India among others, would be completed in 2021-22. In September 2020, the government had apprised that out of the 34 PSUs approved for disinvestment so far, transactions were completed for eight. Transactions for four PSUs were halted as they are recommended for closure. Two of them were held up due to litigation, while transactions for 20 PSUs are in the process. Source link Read the full article

[moneycafe]

Niti Aayog to empanel transaction advisor for PSU assets monetisation, disinvestment

Niti Aayog to empanel transaction advisor for PSU assets monetisation, disinvestment

Niti Aayog has decided to empanel transaction advisor for monetisation of assets and carry forward the process of disinvestment of public sector enterprises. In this connection, the government think-tank Niti Aayog has floated request for proposals (RFP) from eligible entities. The Aayog is hand-holding the respective asset owners — the statutory bodies, public sector enterprises and other such…

[salam2050]

Opposition Raises Concerns Over Aggressive Disinvestment, Asset Monetisation Plan

Opposition Raises Concerns Over Aggressive Disinvestment, Asset Monetisation Plan

The government estimates to raise Rs 32,000 crore from PSU stake sale in the current fiscal. Opposition members in the Lok Sabha on Thursday raised concerns over the government’s “aggressive” disinvestment and asset monetisation plan. Participating in a discussion on Supplementary Demands for Grants Second batch for 2020-21, Supriya Sule of NCP said eight ministries have lined up asset…

[bbcbreakingnews]

PM sets target of 2.5L cr from asset monetisation

NEW DELHI: Prime Minister Narendra Modi said on Wednesday that the planned privatisation of state-run enterprises will help free up resources for spending on welfare, development, empower the citizens and create jobs as he set a target of monetising 100 government-owned assets across sectors worth Rs 2.5 lakh crore. Reiterating his strong backing for privatisation and asset monetisation, the PM said the reforms, which have been launched, were aimed at ensuring that public money is spent judiciously to benefit the poor, in what was seen as a response to critics of the new policy unveiled in the Budget. “The money that belongs to the poor is used for such enterprises (PSUs). This puts a huge burden on the economy,” Modi told a webinar to draw up the roadmap for the implementation of Budget proposals on privatisation and asset monetisation. He said the government does not have to keep running public sector enterprises just because they have been running for decades or they were “pet projects of somebody”. Modi’s speech at the webinar on the implementation of the Budget more than built upon his strong push for privatisation and private enerprise in Parliament earlier this month. It also marked the hardening of what appeared to be an opportunistic push warranted by the pandemic into a strong belief, with Modi stressing that the government has no business to be in business at all. Rather, he went a step further and argued for the elimination of the government’s role in citizen’s life being restricted to only those spheres where it was essential. “Government’s absence should not be felt in areas where it is needed, but its influence should not be felt in other spheres.” The PM sought to fortify the thrust for private sector by linking the twin drives of privatisation and monetisation to the need for meeting the basic needs — from schools and roads to clean drinking water to the poor. Since coming to power in 2014, the NDA government has talked about the sale of PSUs, especially loss-making ones, such as Air India, but it has a poor track record. It sought to pass off the sale of state-run entities, such as HPCL to ONGC, another PSU, as strategic sale, drawing criticism even from the CAG. It is now trying to push it as a key reform initiative and has even added state-run banks and a general insurance company to the list, after specifying that only four strategic sectors — atomic energy, space and defence, transport and telecom, power and petroleum — will have PSUs. Even in the sectors, state-run firms can have a diminished presence. “This policy will go further from the annual disinvestment targets by preparing a medium-term strategic approach and also help in selecting individual companies. There will be a clear roadmap for investment as well,” said Modi, while clearly demarcating the role of state-run entities. “It is the responsibility of the government to support and encourage businesses and enterprises but it is not necessary for the government to run businesses or own them. That is why I say the government has no business to be in business,” Modi told the webinar attended by finance minister Nirmala Sitharaman, investors, private sector executives and government officials. “It is more important for the government to focus on welfare and development projects,” the PM said as he detailed shortcomings of the government’s direct involvement in running businesses. “It is our government’s endeavour to improve the living standards of the people while reducing the government’s unnecessary inference in their lives,” he said and emphasised that there should neither be too little, nor too much of government interference. Referring to the National Asset Monetisation pipeline, the PM said there were several underutilised and unutilised assets in the country. ”We have a target of 100 assets from oil, gas, airport, power, which we plan to monetise. This has the potential for investment opportunities of Rs 2.5 trillion. I can tell you this will continue in future also,” said the PM. “The mantra with which the government is moving ahead is monetise and modernise. When the government monetises, then that space is taken by the private sector,” said Modi, adding that the private sector brings investment, global best practices, which modernises and expands the sector and opens up job opportunities. But he also said that to ensure that this procedure is transparent and within rules, there is a need to monitor. “Therefore, through the ‘monetise and modernise’, we can usher in more efficiency across the economy. Whatever money comes from the government’s efforts can be used for welfare programmes,” Modi said, asserting that funds raised from asset monetisation and privatisation are used for building homes for the poor, rural roads, schools and many other welfare projects. He said privatisation will also open up opportunities for the youth, who will be able to showcase their talent. He said PSU assets have served the nation well and there are immense possibilities in future, too. “We have seen that whenever management changes, enterprises touch new heights. You must assess the value not on the basis of the present but the immense hidden possibilities of the future,” Modi said and urged investors to take advantage of the new policies.

source https://bbcbreakingnews.com/2021/02/25/pm-sets-target-of-2-5l-cr-from-asset-monetisation/

[jrrnaik786]

*PART 1:*

Important points of *Budget* 2021-2022 presented by *FM Nirmala Sitharaman:*

1. Budget in unprecedented times.

2. Announcements made earlier were like 5 mini budgets themselves.

3. Today, India has 2 vaccines & is not only comforting citizens of her own country, but those of neighbouring nations too. It has added comfort to know that 2 ore more vaccines are also expected soon.

4. Modi govt prepared to facilitate a reset of the economy. 2021 is the year of "milestones."

5. Total impact of Atmanirbhar Bharat and measures by RBI was Rs 27.1 lakh crore, which amounts to 30 per cent of GDP.

6. Main pillars of Budget 2021: Health, Human capital, Innovation and R&D, Physical infrastructure.

7. Govt to launch Mission Poshan 2.0; Jal Jeevan Mission Urban.

8. The Urban Swachh Bharat scheme will be implemented with an outlay of over Rs 1.4 lakh crore.

9. A new centrally funded scheme, PM Swasthya Yojana, with an outlay of Rs 64,180 cr will be launched in addition to the existing schemes to develop primary, secondary and tertiary healthcare. FY22 outlay (budget estimate) for health and well-being is up 138%, at Rs 2,23,846 cr. Of this, 35,000 crore will be spent on Covid-19 vaccine. Govt committed to spending more if needed.

10. Voluntary scrapping policy for vehicles announced. Fitness test after 20 years for personal vehicles; after 15 years for commercial vehicles.

*PART 2:*

Imp points of *Budget* 2021-2022 presented by *FM Nirmala Sitharaman:*

11. 217 projects worth over Rs 1 lakh crore completed under National Infrastructure Pipeline.

12. Professionally managed Development Financial Institution with Rs 27,000 crore capital.

13. Seven textile parks to come up in 3 years.

14. Rs 95,000 crore for roads development in Bengal.

15. Aim to complete 11,000 km of national highway infrastructure this year.

16. PLI scheme with outlay of Rs 1.97 lakh crore for 5 years starting this fiscal.

17. FM proposes sharp increase in capital expenditure for next fiscal at Rs 5.54 lakh cr, up from Rs 4.39 lakh cr of last year.

18. Rs 1.10 lakh crore outlay for railways, of which Rs 1.7 lakh crore is for capital expenditure. Railway to monetise dedicated freight corridors.

19. Centre to provide Rs 18,000 crore for public buses.

20. Pipelines of GAIL (India) Ltd, Indian Oil Corp, HPCL will be monetised.

21. Govt to provide Rs 2 lakh cr to states and autonomous bodies to meet capital expenditure.

22. Central fiscal funding for Kochi Metro, Chennai Metro, Bengaluru Metro, Nagpur Metro and Nashik Metro projects.

23. Rs 3.05 lakh crore outlay for power sector. Govt proposing to create a framework to give consumers alternatives to choose from more than one power distribution company.

*PART 3:*

Imp points of *Budget* 2021-2022 presented by *FM Nirmala Sitharaman:*

24. Gas pipeline project to be taken up in J&K.

25. 65,000 cr for road, highway projects in Kerala, Rs 3,400 cr for Assam.

26. 100 pc electrification of broad gauge rail tracks by December 2023.

27. Rs 18,000 cr scheme to augment public transport in urban areas.

28. FM announces Bad Bank. Govt will set up an Asset Reconstruction and Management Company for Stressed Assets to take over bad loans. Alongside, a Rs 20,000 crore equity infusion has been announced for public sector banks.

29. FDI in insurance sector proposed to be hiked to 74% from 49%. IPO for LIC this year.

30. Govt proposes investor charter across financial products.

31. Govt committed to welfare of farmers. MSP has gone through a sea change. Over Rs 75,000 crore paid to wheat farmers in 2020-21, 43.36 lakh benefited from this.

32. Definition of small companies to be revised by raising capital base to Rs 2 cr from current limit of Rs 50 lakh. NCLT framework to be strengthened.

*PART 4:*

Imp points of *Budget* 2021-2022 presented by *FM Nirmala Sitharaman:*

33. Propose increase in agriculture credit target to Rs 16.5 lakh crore.

34. Free cooking gas LPG scheme Ujjwala to be extended to 1 cr more beneficiaries.

35. MSP regime has undergone a change to assure price that is at least 1.5 times the cost of production across all commodities.

36. Disinvestment target for FY2022 at Rs 1.75 lakh cr.

37. Two PSBs and one general insurance company to be divested. Barring four strategic areas, PSUs in other sectors will be divested.

38. Allocation to rural infra development increased to Rs 40,000 cr in next fiscal from Rs 30,000 crore in FY21.

39. Fiscal deficit estimated at 9.5% of GDP for 2020-21. Fiscal deficit for 2021-22 at 6.8% of GDP.

40. Forthcoming Census India's first digital Census. 3768 crore allocated.

41. Social security benefit to be extended to platform and gig workers. Govt proposes portal to collect info on gig-workers, building and construction workers, among others.

42. Central university to be set up in Leh.

[monicasharmalove]

BJP wants Sitharaman to give rural, infrastructure push in upcoming Budget

Current Affairs

The Bharatiya Janata Party (BJP) has prescribed to Finance Minister Nirmala Sitharaman that the Union Budget ought to endeavor to move the concentration from macroeconomic parameters, for example, getting control over financial shortfall and expansion, to "genuine issues" confronting the economy.

The gathering has analyzed that accentuation on meeting monetary targets and controlling swelling should be defeated to spike development. It has proposed an expansion connected fiscal arrangement. Strangely, none of the partners the BJP counseled requested any decrease in direct personal assessment, neither hosts the gathering suggested any unwinding.

Sources said the administration right now faces asset limitation, yet much has been done to facilitate the taxation rate of the working classes over the most recent five years. Likewise, it was contended that such a measure influences a constrained section of individuals when the center ought to be to placed cash in provincial territories.

The BJP has proposed that income limitations confronting the administration can be settled through disinvestment of PSUs, monetisation of government resources and improving the essential and auxiliary security markets. The corporate division, it has stated, presently experiences "twin hazard averseness", incorporating with supply credit from banks, prompting deleveraging and issues in capital development.

While this can be tended to by prodding buyer request, the gathering has suggested the legislature should take a gander at NBFCs, where it can expel capital arrangement limitations and unnecessary oversight any place open cash isn't included. outline Party sources said the BJP was focused on its way of thinking of comprehensive development, however with a market agreeable face...Read More

[m-n-a-critique]

Govt rules out stake sale or disinvestment of BSNL, MTNL

Govt rules out stake sale or disinvestment of #BSNL, #MTNL

The government on Thursday ruled out any plans to sell stake or disinvestment of ailing telecom PSUs — Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) in the Parliament while fixing a target of ₹200 crore and ₹300 crore for them from their asset monetisation in current fiscal.

While the specific assets to be monetised during the current fiscal year have yet not…

[cakandivali]

Modi govt finds a way to meet its Rs 80K cr divestment target

Latest Updates - M. N. & Associates - The Finance Ministry is drafting a framework for ministries and departments which they would follow while selling non-core assets of CPSEs, an official said. The 'Asset Monetisation Framework', which is being drafted by the Department of Investment and Public Asset Management (DIPAM), will help the administrative ministries to fast track hiving off and sale of non-core assets of central public sector enterprises (CPSEs) under their administrative control. "The framework will act as broad guidelines for the ministries to identify non-core assets and proceed with their sale process in an efficient and transparent manner," the official told . To start with, DIPAM, after consulting ministries and CPSEs, has already identified huge tract of land and other assets of nine state-owned companies which will be hived off before they are put on the block for strategic sale. The sale process of these assets has to be taken forward by the concerned administrative ministries, the official said. 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. Most of the assets identified for separate disposal are land parcels and residential flats owned by the CPSEs. With regard to Pawan Hans, the assets identified are Rohini Heliport and Bellman Hangar situated at Safdarjung Airport that was taken on lease from the Airports Authority of India (AAI). For Air India, the assets to be hived off include at least four subsidiaries of the loss-making carrier, including Airline Allied Services Ltd (AASL) and Hotel Corporation of India (HCI). Besides, the headquarter building of Air India in the national capital as well as various other land assets and buildings in different parts of the country would be hived off for separate disposal. Various art works and artefacts owned by the airline too would be put up on the block. In the current fiscal, 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. These include Dredging Corporation of India, HLL Lifecare, Bharat Earth Movers Ltd, Units/JVs of ITDC, Bhadrawati, Salem and Durgapur units of SAIL, Nagarnar Steel Plant of NMDC, Central Electronics and Ferro Scrap Nigam. So far this fiscal, the government has raised over Rs 9,220 crore by divesting stakes in state-owned companies. Last year, the government had mopped up over Rs 1.03 lakh crore from PSU disinvestment. This was aided by the country's oldest gas producer ONGC's Rs 36,915 crore acquisition of government-owned fuel retailer Hindustan Petroleum. Chartered Accountant For consultng. Contact Us: http://bit.ly/mumbai-ca