DIPAM and World Bank sign Agreement
On November 16, 2020, DIPAM (Department of Investment and Public Asset Management) signed an agreement with World Bank. Under the agreement, the World Bank will provide advisory services on asset monetization.
What is Asset Monetisation?
Asset Monetisation is creating new sources of revenue by unlocking underutilized or untilised public assets.
What is DIPAM’s Plan on Asset Monetisation?
DIPAM is to facilitate monetization of non-core assets and enemy property of Rs 100 crores. There are plans to sell minority stakes in LIC.
What is enemy property?
During the India-Pakistan wars in 1965 and 1971, people migrated from India to Pakistan. Under the Defence of India Act, 1962, the Government of India took over the properties of these people who chose Pakistani nationality. These are enemy properties. They are vested by the Government of India under the Enemy Property Act.
In January 2020, a Group of Ministers committee headed by Home Minister Amit shah was set up to monitor the disposal of 9,400 enemy properties. The Government of India estimates that the worth of enemy property in the country will be around Rs 1 lakh crores.
Enemy Property Act
In 2017, India amended the Enemy Property Act, 1968. The amendment expanded the term “enemy subject” and “enemy firm”. Under the amendment, the Enemy Property will continue to vest in the hands of the Government even if the enemy ceases to be an enemy due to death or various other reasons. The amendment mainly denied the rights to the legal heirs of the enemy.
DIPAM has a framework to monetise the assets. The World Bank advisory project will analyse public asset monetization in India, benchmark its business and institutional models against international best practices.
- The project will accelerate the monetization process of non-core assets.
- It will help to unlock the values of marginally used assets.
Category: International Current Affairs