DPE appointed as nodal agency for asset sale
Centre’s Department of Public Enterprises will function as secretariat for Alternative Mechanism and inter-ministerial group
image for illustrative purpose
Speeding Up Process
- DPE authorized to make appropriate alterations
- It takes care of operational requirements
- Will analyze proposals
- And submits the same to the IMG for decision
New Delhi: The central government has made the Department of Public Enterprises (DPE), under the Ministry of Finance, as nodal agency for the asset monetization of central public-sector enterprises (CPSEs) and other government organizations and immovable enemy properties.
The DPE will function as the secretariat for Alternative Mechanism (AM) and the inter-ministerial group (IMG), official sources told Bizz Buzz. 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.
The 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 DPE has been authorized to make appropriate alterations as per operational requirement. It analyzes the proposals received from the administrative ministries and the committees empowered. It then submits the same to the IMG for a decision, after obtaining the comments of National Land Monetization Corporation (NLMC).
NLMC was set up in March 2022 as a fully-owned company under the DPE to undertake professional and orderly monetization of land and other non-core assets.
Earlier, the Department of Investment and Public Asset Management (DIPAM), also under the Ministry of Finance, was the nodal agency for asset monetization. Now, DIPAM will focus on all matters relating to the management of central government investment and disinvestment in CPSUs.
The DPE also recommends to the IMG the model to be used for monetization; the reserve price, and the acceptance and rejection of bid prices. The DPE suo moto initiates the process of asset monetization and submits the same to the IMG for a decision.
