The government is looking forward to Rs 50,000 crore from the auction of mineral and coal blocks in FY23 against an initial target of around Rs 6,000 crore.

The center will focus on monetizing coal and mineral blocks, highway stretches, the BharatNet fiber network and urban real estate to meet its ambitious asset recycling target of Rs 1.62 trillion for FY23, even as the railways appear to meet their target. fail for the second year. in a row by a wide margin, sources told FE.

The government is looking forward to Rs 50,000 crore from the auction of mineral and coal blocks in FY23 against an initial target of around Rs 6,000 crore. About Rs 30,000-38,000 crore is expected from the securitization of toll claims from highways such as Delhi-Amritsar-Katra, Infrastructure Investment Trusts (InvITs) and Transfer-Operate-Transfer (ToT) models at a target of Rs 32,855 crore for the next fiscal year.

After the government unveiled the National Monetization Pipeline (NMP) in August 2021, this ambitious project to boost non-debt capital in the public sector took off quickly. Despite railways only earning Rs 390 crore against a target of Rs 17,810 crore, the revenue/investment mobilized through this route may still be marginally above the target of Rs 88,200 crore in FY22, the first year of the NMP. The auction of coal and mineral mines (i.e. iron ore, bauxite and copper) contributed approximately Rs 50,000 crore, versus an annual sector target of only Rs 3,394 crore, enabling the Center to meet its FY22 target.

The NMP aims to generate revenue/investments of Rs 6 trillion in four years, starting in FY22, from operational infrastructure projects, under various innovative long-term lease plans where the government does not have to cede much of ownership of the assets.

“We have nearly Rs 1 trillion in projects ready next year for monetization that is ready to cross sectors. Others will make progress as we move forward,” an official said.

Bid documents are ready to invite private telecom players and investors to bid on Bharat Broadband Network’s 3 lakh km fiber network to upgrade, operate and maintain across the country, including states such as Haryana and Punjab where the premium could be high are, the official said. This transaction, along with monetization of BSNL/MTNL towers, could bring in approximately Rs 30,000 crore in FY23, as opposed to the target of Rs 20,180 crore.

Although urban real estate is part of NMP, no monetary value has been assigned to it. Officials said this sector has huge potential and could generate Rs 15,000-30,000 crore in FY23.

The government is inviting bids for the Ashok Hotel in central Delhi with lots of vacant land where two more commercial towers could be built. The rent of the Ashoka Hotel and development of vacant lots could generate Rs 7,000-8,000 crore in revenue in terms of upfront accruals and investment.

Likewise, the redevelopment of residential government colonies in Delhi is considered to be another major draw for private investment. Private developers will self-finance the projects and transfer a fixed number of housing units to the government at zero cost instead of a long-term lease to the private party to build houses and offices for commercial purposes.

While most other plans to monetize assets, from power lines to warehouses and stadiums, are on track, railroads will have to restructure their bid documents for station redevelopment and private train operation by establishing commercially viable terms to to succeed, another official said.

This post Mines, roads, BharatNet to lead asset monetization

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