Centre for disinvestment of CPSEs under 2 ministries, 3 departments

The government has reportedly initiated the process to disinvest/ close various Central Public Sector Undertakings (CPSEs) under two ministries and three departments. These include CPSEs under the Ministries of Housing & Urban Affairs and Health & Family Welfare, and Departments of Pharmaceuticals, Telecommunications and Fertilisers, a report in BusinessLine (BL) said.

Twenty-seven CPSEs fall under these departments and ministries. Nine alone come under the ambit of the fertiliser department, the report added. Some of the CPSEs have been making huge losses.

The Centre is also holding discussions on the new CPSE policy that suggests disinvestments or closures in the non-strategic sectors, the BL report said further. All the above ministries and sectors belong to the non-strategic sector.

The report further added that the disposal and closure of the immovable assets will be delinked. The freehold lands will be transferred to a special purpose vehicle, and the leasehold land will be returned to the states.

The process is expected to get over within 7 months and 45 days.

In India, the process of disinvestment of CPSEs is generally conducted by the Department of Investment and Public Asset Management (DIPAM).

It can be done through issuing an initial public offer (IPO), further public offer (FPO), strategic sale, Institutional Placement Program (IPP), and CPSE Exchange Traded Fund (ETF).