The government will now sell the assets including its own land

Mumbai, Ta. January 20, 2020, Monday

While the privatization of several public sector undertakings is likely to be completed by the end of the current fiscal year, the government is considering turning to asset monetization to meet the target of Rs 1.5 trillion of disinvestment, sources said.

Government and asset reconstruction companies are reported to be in the process of selling a number of assets, including the Central and Central Public Sector Enterprises (CPSE).

These assets include electricity distribution enterprises, gas pipelines, land, office space, apartments, factories, and so on. A list of several departments and CPSEs has been prepared to expedite asset monetization, sources in the finance ministry said.

The government is set to monetize the assets of one trillion rupees before March of the current year. Since these assets are in working condition, investors' interest is also good for them. The risk is lower against the buyer of such assets.

In the case of CPSE assets, the proceeds from the sale will go to the respective company's account. Then this company will pay the dividend to the government.

Assets in the form of government land and factories are scattered all over the country while office space and apartments are mostly located in cities like Delhi, Mumbai, Kolkata.

Some of the assets have been handed over to the Asset Reconstruction Company and they are now looking for buyers and investors.

The government does not expect the sale of BPCL, Air India and Concor to be completed before the end of the current fiscal year. Now that it has been accepted by the government, there has been a need to find other ways to meet the disinvestment target.