economy | IST

More government-owned assets to be put on the block for monetization

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In what could help the Narendra Modi government mobilize more funds by monetizing its assets, the core group of secretaries responsible have drawn a fresh list to be put on the block.

In what could help the Narendra Modi government mobilize more funds by monetizing its assets, the core group of secretaries responsible have drawn a fresh list to be put on the block.
According to government sources, New Delhi has initiated a discussion on monetisation of a fresh set of government-owned assets. The government think tank, Niti Aayog, has identified a potential list of assets.
“The government is now going to study the current status of assets to fix the timelines for monetization,” said a person in the know of the developments.
The assets identified are a mix from railways, metro, airports, mines, oil & gas pipelines, government-owned commercial complexes, storage silos, regasification terminals, etc.
“This time, some premium assets like new airports, which the government is considering for monetization are Patna, Agartala, Coimbatore, Jammu, Bhopal are being considered for monetization. Also some of the commercial complexes of Housing and Urban Development Corporation Limited (HUDCO) and National Buildings Construction Corporation (NBCC) have been, Some Petroleum pipelines owned by Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Oil India Limited(OIL). Also, assets like government-owned storage spaces such as food silos, warehouses, cold storages will be up for monetization,” sources detailed.
A discussion on the monetization model has already started for some of these assets. For example,  NITI Ayog has initiated consultations with Railways Ministry already for the dedicated rail freight corridor track, signalling & overhead assets, multi-functional complexes of Kolkata Metro’s real estate.
For the assets identified under the Metro segment securitisation of operational metro sections of Delhi Metro Rail Corporation Limited (DMRC) is proposed through the Carry Operate Transfer (COT) Concession route.
“NITI Ayog has initiated consultations with Urban Development Ministry for this,” sources added.
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