DIPAM Collaborates with World Bank for Advisory Services
Department of Investment and Public Asset Management (DIPAM) have signed an agreement with World Bank on November 16, 2020. With this agreement, the World Bank will provide an advisory services on asset monetization that is for creating new sources of revenue by unlocking underutilized or utilised public assets.
DIPAM’s Plan on Asset Monetisation
DIPAM will facilitate monetization for non-core assets and enemy property of worth Rs 100 crores and above. It has also plan to sell minority stakes in LIC.
World Bank advisory project
The World Bank advisory project was approved by the Finance Minister. This advisory project aims to analyze the public asset monetization in India. It also aims to benchmark its institutional and business models against the international best practices. It further supports the development of operational guidelines and capacity building for their implementation.
Significance of the move
The project will accelerate the monetization process of non-core assets and help to unlock the values of marginally used assets.
Enemy properties are the properties of the people who migrated from India to Pakistan. During the India-Pakistan wars in 1965 and 1971 a large number of people migrated to Pakistan. The Government of India took the possession of their properties in India by exercising the power under the Defence of India Act, 1962. The property was overtook for those people who took the citizenship of Pakistan. These properties are vested by the Government of India under the Enemy Property Act.
Enemy Property Act, 1968
This act enables and regulates the appropriation of property in India that is owned by Pakistani nationals. It was passed after the Indo-Pakistan War of 1965. The act was amended recently in 2017 and expanded the term “enemy subject” and “enemy firm”. The amendment also denied the rights to the legal heirs of the enemy.