Here’s all you need to know about the measures announced by the Finance Minister on May 13. May 2020
As the finance ministry focuses on achieving the sell-off target of Rs 900 billion for 2019-20, it is looking at sourcing consultancy firms for their support towards selling land and building assets of public sector companies. The amount raised through sale of non-core assets would form part of the disinvestment proceeds.
A Request for Empanelment (RFE) has been reportedly floated by the Department of Investment and Public Asset Management (DIPAM) to empanel international property consultancy firms or firms engaged in transaction advisory services, asset monetisation or project management. July first is the last date for firms who find themselves eligible to apply. As reported, the selected firms will be engaged by DIPAM initially for one year, which can be extended for a period of two years.
Reports also indicate that the firms would lend a hand to DIPAM in order to prepare a strategy for monetisation for the land and building assets and conduct techno-economic feasibility studies of each of the assets, providing end-to-end transaction advisory services and ensuring completion of transactions. As indicated by DIPAM on its site, the scope of work would include, but not be limited to:
Firms with at least five transaction advisory projects in their portfolio in the last 10 years pertinent to monetisation of land and building can apply. Also, firms with experience in ReIT listing can apply. Also, entities – fulfilling the same experience criteria – regarding monetisation of property assets of reputed public/private organisations or public private partnership transactions would be eligible to apply.