InvestorQ : Does the government plan to monetize the land owned by Indian PSUs?
Archita Jajjoo made post

Does the government plan to monetize the land owned by Indian PSUs?

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Niti Shenoi answered.
2 months ago
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This is part of the plan to monetize the real estate assets of PSU companies where the realty assets are not core to the business. The Finance Ministry plans to seek approval for setting up a special purpose vehicle or SPV for transfer and subsequent monetization of land and non-core assets of PSUs. This is with specific reference to only those PSU that have embarked on disinvestment.

As per the plan, the SPV will to hold these assets which would then be monetized in multiple ways. This will be done specifically in cases were DIPAM believes there is no point of the land parcels going with the company. Only in such cases will the non-core land parcels be monetized. The list of such potential divestment candidates include BPCL, SCI, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat etc, and it could be a good source of revenues.

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