Assets worth around Rs 1 lakh crore might be sold before FY20-end
The government is planning to sell assets such as office spaces, land, and apartments in order to meet its FY20 divestment target of Rs 1.05 lakh crore, Business Standard reported.
Asset reconstruction companies are in advanced talks with state-run firms to monetise office spaces, apartments, land, power transmission assets, sports stadia, gas pipelines and telecom assets, the report stated.
The government is struggling to meet its disinvestment target since planned privatisation of major companies such as Air India and Bharat Petroleum Corporation (BPCL) are unlikely to be completed in FY20.
Moneycontrol could not independently verify the story.
“A lot of departments and CPSEs have been mobilised to speed up asset monetisation,” the article quotes a government official as saying.
The assets sales involve minimal risk and are easy to conduct, a source at an asset reconstruction company told the paper.
Assets worth around Rs 1 lakh crore might be sold before FY20-end, the source added. But a government official said it is difficult to set a target for asset monetisation.The assets might be sold through several methods such as toll-operate-transfer (ToT), infrastructure investment trusts and long-term concessions, a source stated.
Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.