A newly formed Core Group of Secretaries on Disinvestment and NITI Aayog will become the key functionaries to proceed with the strategic sale of government stake in central public sector enterprises. The final call on such sales will, however, be taken by the Cabinet Committee on Economic Affairs.

The long awaited policy on strategic sales was approved by the CCEA on February 17 and made public on Monday.

As part of the policy, a Core Group of Secretaries on Disinvestment (CGD) will be formed which will be headed by the Cabinet Secretary. Members of the committee shall comprise of Department of Economic Affairs Secretary, Revenue Secretary, Expenditure Secretary, Department of Disinvestment Secretary, Depart of Public Enterprises Secretary, Legal Affairs Secretary, Corporate Affairs Secretary and the Secretary of the administrative department of the public sector enterprise.

The CGD will consider the recommendations of the NITI Aayog on strategic disinvestment of public sector enterprises and recommend to the CCEA the mode and quantum of disinvestment. It will also recommend the terms and conditions of sale, price of sale and the strategic partner to the CCEA. It will be the CGD’s responsibility to implement the CCEA’s decisions on strategic disinvestments.

Further, the CGD will lay down the guidelines for evaluation of assets by a newly formed Evaluation Committee, based on the recommendations of the NITI Aayog. The Department of Disinvestment will be a secretariat of the CGD.

The NITI Aayog’s role in the process will be to identify public sector enterprises for strategic disinvestment, advise the government on the mode of sale and percentage of shares to be sold as well as suggest methods for the valuation of the public sector enterprise.

Related Topics
comment COMMENT NOW