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Government surpasses FY22 asset sale goal

NEW DELHI: The Centre has surpassed the target set for asset monetisation in 2021-22, raising over Rs 97,000 crore with roads, power, coal, mining and minerals accounting for a large chunk of the transactions.
Officials said they hope to cross Rs 1 lakh crore for 2021-22 when the final numbers are announced. The Centre is also confident of achieving the Rs 1.67-lakh-crore target set for the current fiscal year, which began in April, as substantial progress has been achieved by various ministries and departments. They said that proposals worth Rs 1.63 lakh crore of accruals or investments of various central ministries are in the pipeline and at various stages of processing.
The target for 2021-22 was set at Rs 88,000 crore from asset monetisation. Officials said the cumulative potential over the years on account of monetisation transactions completed during FY22 is estimated at Rs 9 lakh crore. The surpassing of the target comes against the backdrop of the government’s inability to meet the privatisation target last year as the IPO of LIC was deferred due to the choppy market conditions, following Russia’s invasion of Ukraine.
The ministry of coal topped the chart raising Rs 40,000 crore from various transactions including auction of 22 blocks, followed by the ministry of road transport and highways with a monetisation value of projects estimated Rs 23,000 crore, the minerals sector notched up Rs 18,700 crore and the power ministry raised Rs 9,500 crore.
The Railways emerged as a laggard, raising just about Rs 800 crore. During a review undertaken by finance minister Nirmala Sitharaman on Tuesday with the Niti Aayog and secretaries of key infra ministries, sectors and ministries which did not meet the target for monetisation in the first year were asked to expeditiously identify “quick win” assets and roll out transactions to meet the targets for the next three years.
The Centre is now planning to partner with states to monetise significant infrastructure assets to boost investment in infrastructure.
The Centre had unveiled the Rs 6-lakh-crore asset monetisation plan in August last year over the next four years. Assets which have been identified include roads, power transmission & generation, gas pipelines, warehousing, Railways, telecom, 25 airports, 31 projects in 9 major ports, coal and mineral mining, sports stadia, redevelopment of colonies.




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