Centre to monetize enemy assets faster

Based on the recommendations of inter-ministerial group (IMG), AM will approve the reserve price for the identified assets to be monetized and also approve the final bid amount

Gearing Up:

• IMG will assist AM in decision making
• AM covers CPSEs, govt bodies, immovable enemy properties
• Enemy property means assets belonged to the people, who migrated to enemy countries

New Delhi: In a bid to speed up the asset monetization framework of central public-sector enterprises (CPSEs) and other government organizations and immovable enemy properties, the government has eliminated a layer of decision making, a group of secretaries (GoS) headed by the Cabinet Secretary. Enemy property refers to that which belonged to the people, who migrated to enemy countries, primarily Pakistan.

An Alternative Mechanism (AM) will be the top decision-making body. It will comprise the Finance Minister, the Road Transport & Highways Minister, and the minister of the Administrative Ministry concerned.

An inter-ministerial group (IMG) will be chaired/co-chaired by Secretary, Department of Public Enterprises (DPE), and Secretary of the administrative department. Representatives of the Department of Expenditure, the Department of Legal Affairs, the Ministry of Corporate Affairs, and Financial Advisor (DPE) not below the rank of joint secretary shall be members of the IMG. The IMG can co-opt any other member as per its discretion.

The IMG will assist AM in decision making.

Earlier, there was the Core Group of Secretaries on Asset Monetization (CGAM). Headed by the Cabinet Secretary, it comprised the Secretaries of the Departments of Revenue, Expenditure, Economic Affairs and of Investment and Public Asset Management (all under the Ministry of Finance), Legal Affairs, Urban Development (in case of land asset monetization), and the administrative ministry concerned. The CGAM has been disbanded, official sources told Bizz Buzz.

Based on the recommendations of IMG, AM will approve the reserve price for the identified assets to be monetized. AM will also approve the final bid amount. AM will approve the changes in the institutional framework approved by the Cabinet Committee on Economic Affairs (CCEA) pertaining to asset monetization.

AM will recommend to the DPE on the CPSEs and their assets to be taken up for monetization. The Ministry of Home Affairs shall do the same in consultation with the Custodian of Enemy Property of India (CEPI) in respect of enemy property. It will recommend the appropriate model for monetization, supervise and monitor the asset monetization, and support National Land Monetization Corporation in the transaction process.