PMO to review asset-monetization drive to accelerate it

22 Sep 2022 , 08:42 AM

With signs of waning momentum following a respectable first quarter, the Prime Minister’s Office will shortly evaluate the government’s asset-monetization effort to accelerate the Rs1.62 lakh crore initiative.

Key government representatives, including those from the infrastructure ministries, the finance ministries, and NITI Aayog, are likely to attend the review meeting, which is anticipated to take place later this month.

In comparison to the Rs97,000 crore raised through asset monetization in FY22, the government has set a target of Rs1.62 lakh crore for FY23. Up to September 15, almost Rs26,800 crore was raised.

It may be decided to create a high-level government body to monitor the asset monetization process.

In its Monthly Economic Report released earlier this week, the finance minister urged the government to pursue aggressive asset monetization at all levels.

The assets up for bid in FY23 include highway bundles and infrastructure investment trust (InvIT) rounds, sports stadium renovation, operational power generation, and transmission assets, airport leases through PPPs, port trust PPPs, warehouse and silo development, and tower and mining asset monetization.

By enlisting private sector partners or transferring revenue rights for a specified duration, finance minister Nirmala Sitharaman launched a National Monetization Pipeline (NMP) in August 2021 to unlock value in infrastructure assets across sectors in brownfield projects. The NMP seeks to raise Rs6 lakh crore over a four-year period, from FY22 to FY25, by selling the Centre’s main assets. The strategy prohibits the outright sale of any assets.

The NHAI has a target of Rs20,000 crores during FY23. But except for a few preliminary ones, none of the auctions have attracted any attention.

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