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Govt working out plan to utilise land banks of PSUs for economic growth

11 Aug 2016 Evaluate

With an ambition to monetise the assets of public sector enterprises, the government is working out a plan to optimally utilise land banks of all central public sector companies (CPSEs), including profit making firms to assess if their existing resources can be utilised for spurring the economic growth, though the government will initially focus on loss making enterprises.

The government is likely to offer the vast pool of land in the possession of loss-making state-owned companies to its profit-making undertakings and state governments, as part of a monetisation exercise to extract maximum value from its sick entities. The move is aimed at unlocking value from approximately 50,000 acre of prime land available with over 50 loss-making public sector undertakings. This will also allow profitable PSUs owned by both the Union and state governments to access new land bank for Greenfield expansion.

Niti Aayog had recently given its report on 74 weak and loss making entities where it has identified 26 firms for closure or winding up. The government may offer the land available with these lossmaking enterprises to state governments, other CPSEs or public sector banks. If another CPSE is interested in setting up a unit, that land bank will be made available, subject to clearances, if required.

The assessment is on for four companies that have been closed down, including HMT Chinar Watches, HMT Watches, HMT Bearings and Tungabhadra Steel Products. The government may offer the land available with these loss making enterprises to state governments, other CPSEs or public sector banks.

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