Context: DIPAM which mainly handles government's disinvestment programme, recently signed an agreement with the World Bank for providing advisory services for asset monetization.
More on the news:
- Objective: The project is aimed at analyzing public asset monetization in India and benchmarking its institutional and business models against international best practices as well as supporting development of operational guidelines and capacity building for their implementation.
- It is expected that this project would facilitate and accelerate the non-core asset monetization process.
- It would also help unlock the value of these unused/marginally used assets which have the potential to substantially augment financial resources for further investments and growth.
- The amount raised through the sale of non-core assets would form part of the disinvestment proceeds.
- It is creating new sources of revenue by unlocking under utilized or unutilised public assets.
- The Department of Investment and Public Asset Management (DIPAM) is mandated with facilitating monetization of non-core assets of government CPSEs (central public sector enterprises) under strategic disinvestment.
- The government has set a target of raising Rs 2.10 lakh crore from disinvestment in the current financial year. Of this, Rs 1.20 lakh crore is to be raised through CPSE disinvestment.