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Govt to use landbanks of public sector firms

Centre will look at all CPSEs to evaluate if their prevailing resources can be used

Policy Pulse
Publish Date: Aug 11 2016 9:10AM | Updated Date: Aug 11 2016 4:29PM

Govt to use landbanks of public sector firms

 The Centre is planning to utilise land banks of state run companies as part of drive to monetise the assets of public sector enterprises. 

 
A senior official told ‘The Economic Times’ that it will look at all central public sector companies (CPSEs) to evaluate if their prevailing resources can be used for stimulating the economic growth.
 
Report comes after the Centre pushed five state-run companies, including Coal India, NMDC, MOIL and Nalco, to announce a buyback of their shares. 
 
Buybacks by these firms is anticipated to deliver a bonanza of Rs 12,000 crore to the exchequer. 
 
"We will come out with a detailed plan which will include the land banks available with these firms," the official told the paper further. 
 
He added that those units which are being closed, their land would  be sold or transferred.
 
 Of the 74 loss-making firms, NITI Aayog has decided to wind up 26 companies. 
 
Government has budgeted Rs 56,500 crore of revenue from disinvestment. It may offer the land available with these lossmaking enterprises to state governments, other CPSEs or public sector banks, the report said.