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Norms may be eased to make asset monetisation lucrative for private companies
The centre could consider relaxing some conditions to make it more lucrative for the private sector to participate in the asset monetisationprogrammes of railways, warehouses, and oil and gas sectors. Some ministries suggested changes in asset monetisation contracts at a meeting called by cabinet secretary Rajiv Gauba on Friday to take stock of the government's National Monetisation Plan (NMP), officials said
"Some ministries highlighted that private players were not interested in the current model. The government is working on the model and will work separately with the concerned ministries on it," said one of the officials quoted above.
The government has set a target of ₹6 lakh crore through asset monetisation in four years (FY2022-25) with FY23 target pegged at ₹1.67 lakh crore.
One of the government officials quoted above said the Prime minister's office (PMO) will be closely monitoring the progress regarding asset monetisation and ministries and departments will have to give quarterly reports regarding the progress in asset monetisation. Last year against the target of ₹88,190 crore for FY22, the government monetised assets worth ₹96,000 crore.
Railways mentioned that private players wanted more freedom on pricing in respect of stations and trains. The ministry of railways had a target to monetise rail assets worth ₹17,000 crore in the last financial year. However, not much headway was made.
For the entire period (till FY 2025), Railways has a monetisation target of ₹1.52 lakh crore, which includes monetisation of 400 stations and privatisation of 90 trains and 15 Railway stadia.
A government official added that similar concerns were raised by the ministry of Petroleum and Natural Gas. "The ministry said it is working on a detailed plan in consultation with NITI Aayog," the official added.
ET had reported on Friday that the cabinet secretary would review the progress of monetisaion plan.
A substantial asset monetisation can provide resources for public investment in infrastructure, a key strategy of the government to revive investments and support the economy.
Team Edu-Visor