The Cabinet Committee on Economic Affairs on Wednesday approved a new mechanism to expedite strategic divestment in select public sector firms.

According to CCEA, the new mechanism envisages setting up of an “Alternative Mechanism” (AM) consisting of Finance Minister Arun Jaitley, Minister for Road Transport and Highways Nitin Gadkari and minister from the concerned administrative department of the select public sector firm.

A per the new mechanism which was proposed by the Department of Investment and public Asset Management (DIPAM), the AM will decide on the matters relating to terms and conditions of the sale.

“The Cabinet Committee on Economic Affairs… has approved the proposal of DIPAM… for setting up an AM consisting of the Finance Minister, Minister for Road Transport and Highways and Minister of Administrative Department, to decide on the matters relating to terms and conditions of the sale from the stage of inviting of Express of Interests (Eols) till inviting of financial bid,” the CCEA said in a statement.

Besides, the new mechanism empowers the “Core Group of Secretaries” (CGD) to take policy decisions with regard to procedural issues for effective implementation of CCEA decisions.

“The approval will help in speedy completion of strategic disinvestment transactions,” the statement said.