The asset monetization target is unlikely to be revised in the next budget


The target for asset monetization is unlikely to be revised in the 2022-2023 Union budget, a source familiar with the matter told Business Today. Many media reported on the possible revision of the FY23 asset monetization target in the upcoming budget and added that the revised FY23 target may be around 1 lakh crore. However, the asset monetization target for the current fiscal year stood at Rs 80,000 crore, which was made public at the time of the National Monetization Pipeline announcement. The annual asset monetization target did not find any mention in the budget document for 2021-2022.

“I don’t think the asset monetization target will be revised in the next budget. Maybe the target phasing will happen, otherwise it will just be a refinement. A source, on condition of anonymity, told Business Today.

The Union budget 2021-2022 identified the monetization of assets as a key means for the sustainable financing of infrastructure. This includes over 12 line ministries and over 20 asset classes. The 5 main sectors (in estimated value) capture 83% of the total value of the pipeline. These top 5 sectors include roads (27 percent), followed by railways (25 percent), electricity (15 percent), oil and gas pipelines (8 percent) and telecommunications (6 percent). ).

The National Monetization Pipeline (NMP) estimates the overall monetization potential of Rs 6 lakh crores through core central government assets, over a four-year period. The NMP was unveiled by the government in September with the intention of unleashing value in brownfield projects by engaging private sector participants, transferring rights to the revenues to them while their property remains with the government. .

During the NMP launch, Finance Minister Nirmala Sitharaman said that this whole pipeline is talking about brownfield projects where investments have already been made, where there is a completed asset that is languishing or not fully monetized or is under -used.

“Thus, by involving the private sector in this, you will be able to better monetize it and ensure new investments in the construction of infrastructure,” she added.

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