Bengaluru: Following the footsteps of the Union Government for augmenting revenues, the State Government has identified five sectors for Asset Monetisation.
The move comes just two months after Chief Minister Basavaraj Bommai had announced in the State budget that two public sector enterprises were in for disinvestment. As a prelude to the Asset Monetisation move, the Government has listed five Boards and Corporations — Karnataka Soaps and Detergents Limited (KSDL), Karnataka Silk Industries Corporation (KSIC), Karnataka Rural Infrastructure Development Corporation Limited (KRIDCL), Mysore Sales International Limited (MSIL) and Hatti Gold Mines Limited (HGML).
Asset Monetisation involves creation of new sources of revenue by unlocking of value of hitherto unutilised or underutilised public assets. The Government by taking the route of Asset Monetisation aims to ramp up its revenues and at the same time lessening the burden of running the State-run enterprises. There are altogether 79 Boards and Corporations other than those in the service sector, out of which 60 are said to be running in profit, while the rest are in losses. Taking note of the loss-making Boards and Corporations, the Government has resorted to disinvestment through Asset Monetisation and as a first step in this regard, there are plans to hand over these loss making units to private companies, according to sources.
Prior to taking this decision, the Government had engaged Darashaw & Company Private Limited to study pros and cons of disinvestment. The company which undertook a study of 15 Public Sector Units, recommended disinvestment in five of them. Accordingly, the Government is now mulling disinvesting 24 percent of its shareholdings in these units, while at the same time continue to have control over them.
This post was published on May 12, 2022 6:33 pm