The Centre’s apex think tank Niti Aayog has reportedly asked ministries to expedite the government’s asset monetisation programme to meet the current year’s target of raising Rs 88,190 crore. Worth mentioning here is that Finance Minister Nirmala Sitharaman had clarified that the ownership of all monetised assets would remain with the Centre and the latter is not selling away these assets.
Cabinet secretary is closely monitoring the vital programme in order to ensure that various ministries, which are part of the plan to ramp up their efforts to ensure that the target is met. “We will be very close to the target for FY22 and if there is any gap it won’t be wide,” an official familiar with the development told ToI, giving details of the strategy.
While roads and power ministries are on track to meet their targets, because of Real estate investment trusts (REITs) and Infrastructure Investment Trusts (InvITs), which are like mutual funds that pool assets, ministries including railways, mining, petroleum, and sports are running behind schedule. Further, railways is probably the biggest laggard after a change of guard.
The daily quoted an official as saying, “Progress needs to be stepped up as it is a crucial part of the plan.” In the current financial year, the Railways have a target of raising Rs 17,810 crore under the national monetisation pipeline. Its plans to get the private sector to operate passenger trains received a tepid response and work is in progress to amend the terms, which many think is being held up thanks to the powerful bureaucracy in the ministry, the daily mentioned.
It is important to note that officers are of the view that REITs and InvITs are safer bets. They believe that the transfer of assets to individual entities is risky, just like strategic sale, making them “extra cautious”.
Citing sources, the publication reported that the focus has now moved to pipelines of oil companies such as GAIL, stadiums, warehouses and other assets. The tourism ministry is leaving no stone unturned to speed up moves to monetise the operation and management of the iconic Ashok Hotel in Delhi, the process may take time as talks before a cabinet decision are still underway.
Likewise, while the telcos have offered real estate assets, the realisation is likely to climb only when the towers come into the market. The Centre plans to monetise Rs 6 lakh crore worth of central assets over the next four years under a plan announced earlier in the 2021-22 Budget.
