Economy

DIPAM Secretary advocates asset monetisation of CPSEs

Our Bureau New Delhi | Updated on November 27, 2020 Published on November 27, 2020

DIPAM Secretary Tuhin Kanta Pandey on Friday called for including asset monetisation as a part of memorandums of understanding between the Government and Central Public Sector Enterprises (CPSEs).

DIPAM refers to Department of Investment and Public Asset Management under Finance Ministry and responsible for stake sale in CPSEs.

“Idle assets do not contribute to Atmanirbhar Bharat, all assets should be gainfully employed to yield positive results,” Pandey, said while addressing PSE Summit organised by CII here. The government is taking various initiatives to monetise immovable assets of CSPEs, especially loss-making one and provide money to these companies.

He also asserted that Atmanirbhar Bharat, which translates to ‘self-reliance’, should not be conflated with ‘self-sufficiency’. The former is built on capabilities which are built through competition, he added.

Market capitalisation

He stressed that increasing market capitalisation should be one of the key action areas for the PSEs going forward apart from facilitating the partake of government and public in their profits by way of giving out dividends.

Lauding the PSEs for their commendable role of ensuring supplies of essential services during the lockdown period, he highlighted that PSEs have been making a concerted effort of clearing the dues of MSMEs as well, so as to make available the much-needed liquidity to these enterprises, during the present difficult times.

Regarding the current disinvestment scenario, Pandey stated that strategic disinvestments should be undertaken wherever possible to move towards a more competitive economy.

Though the current pandemic has thrown the planned disinvestments off course, Initial Public Offerings will continue to remain a priority of the government.

“We hear the markets that Exchange Traded Funds are not the preferred mode of disinvesting, hence the government will not prefer go through this route,” he mentioned.

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Published on November 27, 2020
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