Govt plans to redevelop land of loss-making PSUs

Non-core assets of several weak PSUs may be handed over to specialised state-run agencies for redevelopment

NEW DELHI: The government may rope in state-run developers such as NBCC (India) Ltd to maximise value from the sale of sick and loss-making public sector undertakings (PSUs) that failed to generate suitable investor in the initial round of bidding.

As per a plan shared by the government officials privy to the development, non-core assets including land and buildings of several weaker PSUs may be handed over to specialised state-run agencies for redevelopment to realise higher value or for sale through a bidding process.

Redeveloped land may be offered to investors on lease while ownership of plant and machinery could be transferred completely. The plan is to create an entity on the line land management agency that could be in the shape of a special purpose vehicle (SPV) with participation from experienced companies such as NBCC.

An approval for such agency may be taken from the cabinet.

The new measure is expected to end the almost dead run being encountered in the disinvestment of weaker PSUs including plans for strategic sale.

Sources said that the Department of Investment and Public Asset Management (DIPAM) has drawn up a plan for strategic sale in more than three dozen PSUs, including Air India, Air India subsidiary AIATSL, Dredging Corporation, BEML, Scooters India, Bharat Pumps Compressors, and Bhadrawati, Salem and Durgapur units of steel major SAIL.