Asset Monetisation during FY22

April 13, 2022

In FY22 asset monetisation worth Rs 96,000 crore has been completed by the Central Government. It surpassed the Rs 88,000 crore target. The government has set a target of Rs 1.62 trillion for FY23.

Overview:

For the FY23 targets, the government already has a pipeline of assets that are worth Rs 1.6 trillion in advanced implementation stages.
The progress regarding the monetisation of the assets was reviewed by Nirmala Sitharaman, the Union Finance Minister.

Which organization is preparing the pipeline for the assets to be monetised in FY23?

For FY23, the pipeline for the assets that will be monetised is being prepared by NITI Aayog in consultation with various ministries of the central government. In FY22 the monetisation was led by the power, roads, coal and mining ministries based on the innovative models of the Toll Operate Transfer (ToT) and Infrastructure Investment Trust (InvITs).

Assets monetised by individual ministries

Ministry of Roads, Transport and Highways

Rs 23,000 crore worth of assets has been monetised by this ministry. This included the monetisation of a 390-km stretch through three ToT bundles and InvIT.

Ministry of Power

Assets worth Rs 9,500 crore have been monetised by this ministry with the securitization of the NHPC’s operational hydel assets and PowerGrid Corporation’s InvIT. Rs 7,700 crore was the monetisation target that was set for the Power Ministry.

Ministry of Coal

The ministry auctioned off 22 coal blocks and was able to monetise assets that were worth Rs 40,000 crore. They had a target of Rs 3.394 crores. Also, in FY22, around 31 mineral blocks were auctioned off for a value of Rs 18,700 crore.

Ministry of Railways

The Railway Ministry was only able to monetise Rs 800-900 crore of assets. They had a target of Rs 17,810 crore for FY22. The ministries that couldn’t achieve the FY22 monetisation targets would see the remaining amount carried forward to FY23.

Major projects that could not be monetised

Some major projects like stadiums, airports, and hill trains couldn’t be monetised in FY22. The centre is working to monetise them in FY23.

Monetisation Target

The central government has plans to monetise around Rs 6 trillion worth of assets over a four-year period. In FY24, the Centre has targets of monetising assets worth Rs 1.79 trillion and Rs 1.67 trillion in FY25.

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