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    Govt to expedite creation of National Monetisation Pipeline; core group discusses roadmap for asset monetisation

    Govt to expedite creation of National Monetisation Pipeline; core group discusses roadmap for asset monetisation

    Govt to expedite creation of National Monetisation Pipeline; core group discusses roadmap for asset monetisation
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    By Timsy Jaipuria   IST (Updated)

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    Government looking to conclude strategic sale of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans and Neelachal Ispat Nigam in next fiscal

    A core group of secretaries met on Monday to take stock of the proposed assets for monetisation pipeline, sources told CNBC-TV18. The move comes as government think tank, NITI Aayog, is involved in preparing the next list of central public sector companies for disinvestment in the coming weeks, Vice Chairman Rajiv Kumar said on Thursday.
    CNBC-TV18 has learnt that operational Delhi Metro (DMRC) routes are likely to be part of the exercise.
    In Budget 2021, Finance Minister Nirmala Sitharaman pegged the divestment target at Rs 1.75 lakh crore to fund various projects. The government is looking to conclude the strategic sale of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans and Neelachal Ispat Nigam in the next fiscal. Besides, the initial public offering of LIC would be launched and strategic sale process of two PSU banks and one general insurance company would be initiated.
    "The core group in its meeting on February 8 reviewed the possibility of inclusion of additional pipeline assets identified by the Petroleum Ministry. These include GAIL, IOCL and HPCL. The Railway Ministry too has updated a list to include assets of Dedicated Rail Freight Corridor and infrastructure assets such as Track and OHE, Konkan Railways, MFCs, Kolkata Metro, Sports stadiums, redevelopment of railway colonies and hospitals. Warehousing assets of Department of Food and Public Distribution are also likely to be put on the block for monetisation," sources said.
    Apart from this, assets identified also include that of Ministries of Power, Steel & Mines, however, these ministries will soon be giving an updated list of assets to NITI Aayog which can be monetised, sources pointed out.
    The Sports Ministry too has suggested that it shall be releasing Revised RFP for Financial and Legal Consultant for Jawaharlal Nehru Stadium and it will further identify additional Sports Stadiums for monetisation, keeping in view the government's agenda to monetise various assets which have high potential and interest from the private sector.
    Similarly, existing Model Concession Agreement on Ports is being revised, to push the viability of monetization of various port assets. Ministry of Urban development has initiated fresh talks with the NITI Aayog to include operational Delhi Metro (DMRC) route. To facilitate this, the government is considering to incorporate a panel that will look into sustainability and financing of DMRC projects, sources added.
    NITI Aayog has developed a Composite Dashboard for Asset monetization for real time progress updates and monitoring of core as well as non-core assets, which will also monitored by DIPAM. "The dashboard development has been completed and will go live upon completion of security audit," sources highlighted.
    For the line ministries, the government has suggested that each ministry shall be required to designate a nodal officer (joint secretary level), who will be authorised to update the dashboard on a regular basis on behalf of ministries.
    The core group has now begun talks on creating the National Monetisation Pipeline of potential brown-field infrastructure assets. Sources said that all ministries will be updating the NITI Aayog regarding potential assets to be monetised between FY21-24.
    Meanwhile, a detailed meeting was also held to take stock of the already existing proposal of monetisation of 12 lots of Highway Bundles and NHAI's InvIT proposal. "The status of InvIT will be updated by NHAI which will lay out a detailed governance structure including the board, management, investment manager, project manager etc," sources added.
    The Power Ministry has given an update on the latest status of InvIT and the proposal of monetization of the transmission lines of Power Grid – PGCIL -- valued at Rs 10,000 crore. The Railways Ministry has updated on 12 clusters of private passenger trains which is close to 150 trains. The rail ministry says RFQ for 10 stations has been launched where Railways has also short-listed applications for eight stations.
    The railways has already launched RFQ for Mumbai CSMT Station and applications are being received. For New Delhi Station, RFQ has been issued which the due date was February 5, 2021 and applications are being assessed at present. Railways will soon launch RFQ for remaining 40 stations.
    "The Aviation Ministry has also updated that they are expediting work at six airports in tier 2 and tier 3 cities, which includes -- Tiruchirappalli, Amritsar, Varanasi, Bhubaneswar, Raipur and Indore. Also, the aviation ministry is working to identify additional AAI airports that can be taken up through PPP mode. The Ports and Shipping Ministry will also be working on monetisation of 11 assets, including 10 berths currently operated by the Port Trusts and International Cruise Terminals," sources said.
    The Department of Telecom will be expediting the award of nine PPP packages under Bharatnet. DoT has started securitisation transactions of tower rental revenues of BSNL. Moreover, the government is also looking at awarding three Sports Stadiums of Railways by Rail Ministry which are under progress, sources added.
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