For the last 5-6 years, CPSEs have been major investors in the economy as the private sector has been shying away from making fresh investment due to various reasons.
This will be part of a new coherent Public Sector Enterprises Policy to be formulated to push reforms in central public sector enterprises (CPSEs), Finance Minister Nirmala Sitharaman told reporters
CPSE ETFs to become tax-saving instruments
Sitharaman in her speech said that the government has been following the policy of disinvestment in non-financial public sector undertakings without taking the government's stake below 51 percent.
NITI Aayog has given a list of around 50 assets, including land and building, of state-owned companies for sale to the Department of Investment and Public Asset Management, a wing of the Finance Ministry which deals with disinvestment.
The government has set itself a divestment target of Rs 90,000 crore for the current fiscal
Currently, there is no set timeline for concluding strategic sale of a state-owned company and the entire process, in some cases, drags on for months, if not years.
REITs, which are regulated by Sebi, are instruments for investments in real estate. Under this REITs model of securitisation, the land assets will be transferred to a trust providing investment opportunity for institutional investors.
The Department of Investment and Public Asset Management (DIPAM) on Monday issued the guidelines for monetisation of non-core assets of CPSEs and immovable enemy properties, following a Cabinet decision in February.
The Alternative Mechanism (AM) on strategic disinvestment was set up in 2017 and consists of the finance minister, the road transport and highways minister and the minister representing respective administrative department.
The Cabinet has already approved strategic sale of about 2 dozen central public sector enterprises (CPSEs), including Air India, Dredging Corporation of India, and Bharat Earth Movers Ltd, for strategic sale.
"The subscription CPSE ETF FFO-3 will commence from Wednesday, November 28, till Friday November 30, on BiMF (BSE iBBS Platform for Mutual Fund) module on iBBS platform of BSE," the exchange said in a circular.
As many as six CPSEs have made regulatory filings to the stock exchanges for launching share buyback programmes, which could fetch the government a little over Rs 3,000 crore.
The government has raised more than Rs 9,600 crore through IPOs of three CPSEs and a tranche of Bharat-22 ETF in the first six months of the fiscal so far.
The CPSE ETF comprises 10 state-owned bluechips and shares in these companies can be sold only till the government stake in them reaches 55 per cent.
In the Budget for 2017-18, the then Finance Minister Arun Jaitley had announced the possibility of merger of PSUs to create large state-owned firms.
Senior officers of Central Public Sector Enterprises (CPSEs) and top ministry officials will also attend the conclave.
Exchange traded funds (ETFs) seem to be fast gaining ground in India, with investors from about 588 cities being attracted now towards such an investment product.
Within two weeks of the Budget announcement of listing all profitable central public sector enterprises, the Department of Investment and Public Asset Management (DIPAM) has issued guidelines detailing the mechanism and procedure for time-bound listing of CPSEs on Stock Exchanges.
Moving ahead with its proposal to disinvest Engineering Projects (India) Ltd through merger with a similarly placed CPSE, the government is roping in consultants to estimate the market value of assets of the PSU.
If we observe the 3 previous Budgets presented by Jaitley, it can be clearly seen that the focus of team NAMO remains the same and this government means business as usual.
As per the capital restructuring guidelines of the Department of Investment and Public Asset Management (DIPAM), a CPSE has to go in for a share split when its market price or book value exceeds 50 times of its face value.
Focus in 2017-18 may move to strategic sale of significant government equity in loss making units; NITI Aayog preparing list of unlisted state-owned companies that may qualify for strategic sale
In an interview to CNBC-TV18 Neeraj Kumar Gupta, Secretary, Department of Investment and Public Asset Management (DIPAM) spoke about his views on Central Public Sector Enterprises Exchange Traded fund (CPSE ETF).
In September, ICICI Prudential AMC had been appointed by the government to manage the new ETF in the current fiscal.