Business, Economy & Banking Current Affairs - 2019

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Govt suspends LoC trade with PoK

The government has issued orders to suspend the Line of Control (LoC) trade between Jammu & Kashmir and Pak Occupied Kashmir (PoK).

Why did the government suspend LoC trade?

  • The LoC trade was initiated to facilitate the exchange of goods of common use between local populations across the LoC in Jammu & Kashmir.
  • On the contrary, the reports indicated that Cross LoC trade routes were being misused by the Pakistan based elements for funnelling illegal weapons, narcotics and fake currency etc.
  • NIA probes also indicated that a significant number of trading agencies engaged in LoC trade are operated by persons closely associated with banned terror organisations involved in fueling terrorism/separatism.

The notification by the Ministry of Home Affairs has stated that it has decided to suspend LoC trade at Salamabad & Chakkan-da-Bagh in Jammu & Kashmir. Further, a stricter regulatory and enforcement mechanism is being worked out & will be put in place in consultation with various agencies and the issue of reopening of LoC trade will be revisited thereafter.

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Guidelines for Monetisation of Non-Core Assets of CPSEs

The Department of Investment and Public Asset Management (DIPAM) has issued the guidelines for monetisation of non-core assets of Central Public Sector Enterprises (CPSEs) and immovable enemy properties.

Guidelines for Monetisation of Non-Core Assets

  • An inter-ministerial group chaired by the secretary of DIPAM will identify the non-core assets of the CPSEs on its own and also on the basis of recommendations of the Niti Aayog.
  • The final call will be taken by the Finance minister-headed panel.
  • Once the panel approves the assets for monetisation, it should be completed within 12 months from the date of approval, failing which the finance ministry may restrict budgetary allocations to the CPSEs.
  • CPSEs can also seek relaxation from the inter-ministerial group of the 12-month deadline for sale of non-core assets.
  • In case of immovable enemy properties, the guidelines said that the assets would be identified for disposal in consultation with the stakeholders including the respective state governments.

The amount raised through the sale of non-core assets would form part of the disinvestment proceeds. The government has set a target of Rs 90,000 crore to be raised through CPSE disinvestment in the current financial year.

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