Coal news and updates

Asset monetisation of Rs 33,422 cr in FY23 so far, Coal Min leads with Rs 17K cr

The Ministry of Coal has so far achieved a monetisation value of Rs 17,000 crore, against an overall monetisation target of Rs 30,000 crore in 2022-23, the Ministry of Road, Transport and Highways has achieved a monetisation of Rs 4,100 crore against the overall target of Rs 32,855 crore in the current fiscal.

Written By  Zee Media Bureau|Last Updated: Nov 22, 2022, 10:19 AM IST|Source: PTI

·         The govt monetised the assets worth Rs 33,422 crore under NMP.

·         The coal sector raises Rs 17,000 crore against the target of Rs 30,000 crore.

·         The Civil Aviation ministry raised Rs 411 crore against the target of Rs 7,299.

New Delhi: The government has monetised assets worth Rs 33,422 crore under the National Monetisation Pipeline (NMP) in 2022-23 so far, with the Coal Ministry leading the list by raising Rs 17,000 crore, and the Ports and Shipping Ministry surpassing its overall fiscal target, according to sources. In 2021-22, the government surpassed the programme's first-year target of Rs 88,000 crore by completing transactions worth Rs 1 lakh crore.

Finance Minister Nirmala Sitharaman in a meeting with Niti Aayog CEO Parameswaran Iyer on November 14 reviewed the progress of NMP implementation. Sources told PTI that according to the government's latest estimate, there is likely to be a shortfall of Rs 38,243 crore in realising the overall asset monetisation target of Rs 1,62,422 crore in 2022-23.

"Likely realisation from asset monetisation under NMP in the current fiscal has been now estimated at Rs 1,24,179 crore," they said. According to sources, while the Ministry of Coal, the Ministry of Mines, and the Ministry of Ports and Shipping are likely to surpass the asset monetisation target, the Ministry of Road Transport and Highways, is on track to achieve the target. (Also Read: Union Budget 2023-24: Focus should be on job creation, steps to broaden tax base, India Inc tells FM Nirmala Sitharaman)

The Ministry of Power, the Ministry of Railways, the Ministry of Civil Aviation, and the Ministry of Oil and Gas are likely to miss the target. While the Ministry of Coal has so far achieved a monetisation value of Rs 17,000 crore, against an overall monetisation target of Rs 30,000 crore in 2022-23, the Ministry of Road, Transport and Highways has achieved a monetisation of Rs 4,100 crore against the overall target of Rs 32,855 crore in the current fiscal.

The Civil Aviation Ministry has so far raised only Rs 411 crore against the target of Rs 7,299 crore in the current financial year. While the Railways ministry has so far raised Rs 1,829 crore against the overall fiscal year target of Rs 30,000 crore,the Ministry of Power has so far achieved monetisation target of Rs 2,000 crore against its overall fiscal year target of Rs 15,308 crore.

Sources said that the government is considering linking the budgetary support to ministries to monetisation. Ministries have also been asked to achieve targets by identifying additional asset classes. Sources said Gujarat, Maharashtra, Karnataka, Uttar Pradesh, Madhya Pradesh, and Odisha have been identified as focus states with a monetisation base.

In these states, state highways and expressways, transmission networks, urban terminals, and state warehouses are identified as potential assets. Sources also said sectors with challenges have been asked for expediting the rollout of transactions. Six state-specific workshops undertaken by Niti Aayog have been planned.

In August 2021, Sitharaman announced the Rs 6 lakh crore NMP over four years to unlock value in infrastructure assets across sectors. Niti Aayog in consultation with infrastructure line ministries had prepared the report on the NMP.