DIPAM Secretary: Achieving the ₹80,000 Crore Target in FY27
In a recent address at a CII event, Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), expressed confidence in achieving the government’s ambitious ₹80,000 crore target for disinvestment and asset monetisation by FY27. This is a significant increase from the ₹33,837 crore target set for the current fiscal year.
Aiming High: Confidence in the ₹80,000 Crore Target
– High Aspirations: Chawla emphasized that the high target reflects the government’s aspirations and confidence in managing public assets effectively.
– Framework Development: DIPAM plans to collaborate with the Economic Affairs Department to create a framework aimed at unlocking value from land held by various central public sector enterprises (CPSEs). This initiative will utilize dedicated real estate investment trusts (REITs) to facilitate the recycling of valuable real estate assets.
Strategic Moves: Real Estate Investment Trusts (REITs)
– Budget Proposal: In the recent budget presentation, Finance Minister Nirmala Sitharaman proposed accelerating the monetization of state-run firms’ real estate assets by establishing dedicated REITs.
– Industry Collaboration: Chawla is actively seeking industry feedback regarding the strategy for reducing government stakes in state-owned enterprises, indicating a collaborative approach to the disinvestment process.
Conclusion: A Confident Outlook
As the government gears up to meet the ₹80,000 crore disinvestment and asset monetisation target for FY27, Chawla’s comments reflect a strong commitment to boosting economic growth through strategic asset management. By leveraging REITs and soliciting industry feedback, the DIPAM aims to create a framework that not only achieves disinvestment goals but also revitalizes the state-run sector. With clear action plans in place, the ambitious target seems not only high but indeed achievable.