Govt seeks firms to advise on PSU assets sale1 min read . Updated: 11 Jun 2019, 12:23 AM IST
- Finance ministry seeks bids from consulting firms to advise on PSUs’ land, building monetization plan
- An inter-ministerial group to identify non-core assets of central public sector enterprises
NEW DELHI : The finance ministry has invited bids seeking advisory services to help monetize non-core and fixed assets, such as land and buildings, of public sector enterprises. The move is part of the Centre’s ambitious sell-off target of ₹90,000 crore for 2019-20.
The department of investment and public asset management (Dipam) has floated a request for empanelment (RFE) to invite global property consultancy firms, or other entities engaged in transaction advisory services, asset monetization or project management.
According to the department of investment and public asset management website, non-core assets, including land and buildings, and brownfield operational assets such as pipelines, roads, mobile towers and electricity transmission lines could be up for grabs.
“Many of the assets are sub-optimally utilized and can be appropriately monetized to create greater financial leverage and value for the companies and the government, being the shareholder. Government intends to monetize select non-core and other assets owned by CPSEs/ PSUs/other government organizations using appropriate model," it said.
An inter-ministerial group chaired by the Dipam secretary, in consultation with the NITI Aayog, will identify non-core assets of central public sector enterprises, or CPSEs.
So far this year, the government has raised ₹2,350.25 crore from PSU disinvestments. In 2018-19, it had collected ₹85,000 crore from divestment proceeds.
The empanelled firms will be required to prepare feasibility reports for the identified assets, assist in finalizing the model for monetization, prepare the bid document, and conduct the sale .
The deadline for submission of bids is 1 July.
The selected bidders will be engaged by Dipam initially for a year, which can be extended for a period of two years.