Rs 600 Cr Of Govt Land Will Be Sold Via Online Auction: How Will It Work?
In a move to monetize idle assets, the Government is working on a plan to sell off land lots of some PSUs that are free from any litigation, worth over Rs Rs 600 crore.
The Department of Public and Asset Management (under the Ministry of Finance) is managing the initiative of this land lot sale, most of which has already been finalised.
The sale of these idle assets will be made through the new online bidding platform, created by the government enterprise MSTC.
It has been reported that DIPAM has finalised some of the land lots which are to be sold on the e-bidding platform. These include the land assets of MTNL, BSNL and SCI, among others.
Idle Land Assets of Govt will Be Sold in E-Auction
Land lots worth more than Rs 600 crore will be sold through the new online bidding platform, by the Government.
These pieces of land are the idle assets of some public sector undertakings owned by the Government. By selling off these idle land lots of state-owned entities, the government looks forward to monetizing their value.
The effort is on the lines of the National Monetisation Pipeline (NMP), where the government aims to monetise underutilized assets. It must be noted here that the NMP would include only non-core assets.
However, unlike NMP, the land lot sale of these government-owned PSU’s idle assets through e-bidding, will pass the ownership of assets too to the purchaser.
In many ways, DIPAM’s PSU land sale is similar to the disinvestment of core assets created for monetisation by the Government think tank Niti Aayog.
DIPAM has also prepared the list for sale of land assets, some of which include those of the Shipping Corporation of India (SCI), BSNL, MTNL and BEML. It is preparing to seek final approval of the same.
This will be the first sale made through the online bidding portal.
According to an official, DIPAM has chosen land assets which are free from any litigation, for this sale. Additionally, land assets of large PSUs whose non-core assets need to be separated before the disinvestment process, have also been included in the pipeline.
Another official informs that the government is looking forward to monetising land parcels worth Rs 10,000 crore through the new e-bidding platform.
DIPAM Appointed Consultants for Finalizing the List
DIPAM has been in close discussions with a group of consultants appointed especially for the purpose of the PSU land sale.
Among the consultants empanelled by DIPAM to help prepare the final list of land assets to be set for sale, are CBRE South Asia, Deloitte Touche Tohmatsu India, Boston Consulting Group, JLL Property Consultants (India) and Knight Frank India.
The valuation of the first batch of land assets has also been done by the empanelled consultants, besides fixing the reserve price, added the official.
DIPAM has made certain demonstrations to check whether the platform is prepared for conducting online bidding.