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Asset monetisation by the Government is likely to miss the projection for FY23, data presented in the Lok Sabha on Monday showed.
“During FY 22-23, based on the updates collated from the line ministries & departments till the end of January 31, 2023, proposals with an estimated monetisation value of about ₹76,000 crore were completed by various ministries and submitted for review,” Minister of State for Finance Bhagwat Kishanrao Karad said in a written response. Under the National Monetisation Pipeline (NMP), value of assets envisaged to be monetised was about ₹88,000 crore during FY21 and ₹1,62,422 crore during FY22.
Talking about FY22, Karad informed that transactions with aggregate monetisation value of about ₹97,000 crore in terms of accruals or private investments were completed.
NMP was launched in August 2021 aimed at enabling accelerated infrastructure creation and bringing efficiencies in infrastructure operation and maintenance for a multiplier impact on the economy. Monetisation of assets identified under NMP is envisaged either through structured Public Private Partnerships (PPP) or through capital market instruments. The detailed structure is normally finalised on a case-to-case basis in accordance with extant guidelines and regulations subject to appraisal and approval by competent authority.
The value for FY22 and FY23 includes assets from key Ministries such as Road Transport & Highways, Railways, Power, Coal, Ports Shipping & Waterways, Petroleum & Natural Gas, Department of Telecom, and Civil Aviation. Among these, the aggregate monetisation value under NMP for assets of Ministry of Railways and Ministry of Coal was ₹1.52-lakh crore and ₹28,747 crore, respectively, over the NMP period (FY22-25).
According to Karad, ministries and departments are processing proposals and have undertaken multiple initiatives towards expediting roll out and fructification of transactions envisaged during FY22-23. “This includes detailed due diligence in accordance with extant guidelines, periodic review meetings, empowered committees for fast track processing, inter-ministerial consultations to resolve structural issues, from time to time. Additionally, periodic reviews at the programme level are being undertaken by a multi mechanism,” he said.
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