The government is working on a Rs 6 trillion asset monetisation plan that will include a range of assets including pipelines of Power Grid Corporation of India (PGCIL) and national highways, among others, DIPAM Secretary Tuhin Kanta Pandey said.
“National monetisation plan will have a range of assets from Power Grid pipeline to national highways, toll operate transfer (TOTs),” Department of Investment and Public Asset Management (DIPAM) Secretary Pandey said.
The Infrastructure Investment Trust (InvIT) of Power Grid Corporation of India (PGCIL) was successfully done which has led to putting regulatory systems in place. This entailed streamlining a host of regulations and procedures. The second InvIT by GAIL is expected soon, which is also in the pipeline, Pandey said at the annual session of industry body CII.
Tenders for public private partnerships (PPP) in railway stations have also been announced, and the model has been successful in managing airports.
“There is a big asset monetisation pipeline where private sector participation is anticipated,” Pandey said.
The government has also developed an asset monetisation dashboard for monitoring real-time progress of its asset monetisation pipeline, and providing visibility to investors.
Policy think tank NITI Aayog has finalised the National Monetisation Pipeline (NMP) of potential brownfield infrastructure assets, and a Rs 2.5 trillion target was given to government departments and public sector undertakings (PSUs). The monetisation pipeline has been created for a four-year period from financial year 2021-22 to 2024-25. For the next 4-5 years, the Centre is also likely to set a target of Rs 3 trillion for states under the national asset monetisation pipeline, Business Standard had earlier reported.
Pandey also said the government is adopting a calibrated approach for minority stake sales by keeping the interests of the existing private investors in mind.
The government intends to complete major disinvestments in the pipeline, this year, that include Air India, Bharat Petroleum Corporation (BPCL), Shipping Corporation of India (SCI), BEML, Pawan Hans and Neelachal Ispat Nigam (NINL), which have received sufficient interest from bidders, he said.
“The government is also talking about closure of enterprises quite openly for the first time, in case it cannot be disinvested. In the non-strategic sectors, the direction is that either we privatise or close. Hence, apart from NCLT, there will also be a lot of assets on offer from the public sector,” Pandey said.
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Rs 6 trillion asset monetisation plan in the offing, says DIPAM secretary - Business Standard
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