The Government is planning to bring in the state-owned developer NBCC [National Building Construction Company] to monetize the value of sick PSUs [Public Sector Undertaking] to the maximum extent by selling them along with the loss making-PSUs as they failed to get perfect investors in the bidding process initially.
The Government officials close to the entire procedure told that NBCC will get the responsibility to redevelop the non-core assets that include land and buildings of several sick PSUs in order to realize greater value of the same during the sale via bidding process.
The officials are hopeful to bring full stop on this dead run that has been witnessed while disinvesting sick PSUs that also includes plans for strategic sale.
Prior to this, a massive setback was witnessed with the disinvestment plan for public sector aviation firm Pawan Hans as it also failed to get an investor. In 2018, bid for the disinvestment of Air India didn’t yield a good and positive response. Apart from this, the move for strategic disinvestment of other loss-making entities like Scooters India Ltd also failed in the past one year.
In the present scenario, the Department of Investment and Public Asset Management [DIPAM] came up with a strategic sale plan for 35 PSUs that includes Air India, Air India subsidiary AIATSL, Dredging Corporation, BEML, Scooters India, Bharat Pumps Compressors, and Bhadrawati, Salem and Durgapur some units of SAIL.
The measures to bring NBCC in is making everyone hopeful to sail through the situation with higher valuations as their operations can be restricted between core and non-core activities before putting up the sale.
In 2016, the Union Government framed guidelines to close loss-making companies according to which appointment of a land management agency was to be done by the administrative ministry or the CPSE’s board in order to assist land disposal.
Under the new model, any CPSE can take over the activity of redevelopment by charging some amount of fee. The current land use and its suitability for industrial and manufacturing can be considered for the redevelopment work.
One of the Government officials said that the land of some sick PSUs can be utilized by other PSUs that are doing good in order to expand as this PSU-disinvestment plan us perfect for the sick ones.