DIVESTMENT OF CENTRAL PSUS FASTTRACKED
To speed up strategic disinvestment transactions in central public sector enterprises (CPSEs), the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Wednesday approved setting up of an alternative mechanism (AM).
The AM will be chaired by finance minister Arun Jaitley with minister for road transport and highways Nitin Gadkari and the minister of the administrative department as the members. The new mechanism will decide on matters relating to terms and conditions of the sale from stage of inviting of express of interests till inviting of financial bids.
The new mechanism will also empower the Core Group of Secretaries (CGD) to take policy decisions with regard to procedural issues and to consider deviations as necessary from time to time for effective implementation of decisions of CCEA. The government has shortlisted Bharat Earth Movers Limited, Scooters India and Pawan Hans Ltd, three units of Steel Authority of India Limited (SAIL) for strategic disinvestment this year.
Earlier, government had set up another alternative mechanism with same composition to decide on quantum of disinvestment in case of minority stake sale in CPSEs. Jaitley is also heading another alternative mechanism to decide on privatization of the national carrier Air India. The CCEA has given in principle approval for the privatisation and has asked the Jaitley panel to decide on treatment of unsustainable debt of Air India, hiving off of certain assets to a shell company, demerger and strategic disinvestment of three profit-making subsidiaries and the quantum of disinvestment and the universe of bidders.
Meanwhile, in a move to boost access to irrigation by completing pending projects, the Cabinet also approved the apex rural bank, National Bank for Agriculture and Rural Development (NABARD) to raise ₹9,020 crores by issuing bonds.
The approval follows a proposal in the Budget (2016-17) to create a long term irrigation fund. On completion, these projects will help water 7.6 million hectares area leading to a rise in cropping intensity.