The Narendra Modi government has asked the Oil and Natural Gas Corporation (ONGC) to sell its golf courses around the country. The response comes days after the Department of Investment and Public Asset Management (DIPAM) termed the fairways to be 'non-core' assets.
In an assessment, DIPAM has identified two ONGC golf courses in Ahmedabad and Vadodara in Gujarat as prime locations that could fetch massive investments from real estate. The government responded to the assessment by asking ONGC to sell the assets.
Bharat Petroleum Corporation Limited (BPCL) follows ONGC in the list having 'non-core' assets. BPCL's Chembur sports club will also be sold after permission from the government.
According to officials, there might be an outright sale or a joint venture to redevelop the land. The reason behind the monetisation of assets was the prime location of the fairways and the profit that the government can gain by developing real estate projects there.
Here's how monetisation of assets will be kept transparent
With an aim to rationalise resource utilisation in the public sector, officials from DIPAM, Niti Aayog, oil ministry and other departments took a unified decision to monetise the assets of ONGC and BPCL. The decision makers also stood firm that the proceeds will go to central public sector enterprises (CPSEs) and not the exchequer.
"They are just looking at it as a real estate play and missing the larger purpose these facilities serve for the company," reported Economic Times. The officials of CPSEs are reportedly not happy with the decisions.