homeeconomy News53% of asset monetisation target for FY23 met till January end, Government may have missed full fiscal aim of 1.62 lakh crore rupees
53% of asset monetisation target for FY23 met till January end, Government may have missed full fiscal aim of 1.62 lakh crore rupees
Although monetisation data for February 2023, March is not available, given the pace of progress, the government may have missed the full fiscal aim for asset monetisation.
The government achieved 53 percent of the FY23 asset monetisation aim of 1.62 lakh crores by January end. In other words, proposals worth 76,000 crores of the 1.62 lakh crores FY23 monetisation pipeline were completed for review, the Finance Ministry has told Parliament.
According to the Finance Ministry, “During FY 22-23, based on the updates collated from the line ministries & departments till the end of January 31, 2023, proposals with an estimated monetisation value of about Rs. 76,000 crores were completed by various ministries and submitted for review.”
Although monetisation data for February, and March is not available, given the pace of progress, the government may have missed the full fiscal aim for asset monetisation.
The Finance Ministry also told Parliament, “Ministries and departments are processing proposals and have undertaken multiple initiatives towards expediting roll out and fructification of transactions envisaged during FY 22-23.
This includes detailed due diligence in accordance with extant guidelines, periodic review meetings, empowered committees for fast-track processing, and inter-ministerial consultations to resolve structural issues, from time to time.
Additionally, periodic reviews at the programme level are being undertaken by a multi-level institutional mechanism.”
In September 2021, the government announced a 6 lakh crore rupees national monetisation pipeline for the period FY 22-25. During FY22 it exceeded its monetisation aim of 88,000cr to clock 97,000 crores.
The next two years' targets are even stiffer, during FY24 or the current fiscal the asset monetisation aim is pegged close to 1.8 trillion rupees and for FY25 it has been pegged at 1.67 trillion rupees.
Last financial year the government had done some brainstorming on how to make the monetisation pipeline more workable. Views were expressed that targets may need to be rejigged as the NITI Aayog recommendations also included ongoing monetisations instead of new proposals, making the overall aim look inflated.
“The aggregate monetisation value under NMP for assets of the Ministry of Railways and Ministry of Coal was Rs. 1.52 lakh crore and Rs. 28,747 crores respectively over the NMP period (FY 22-25)”, the Finance Ministry said.
Under NMP, the value of assets envisaged to be monetized was about Rs. 88,000 crores during FY 21-22 and Rs. 1,62,422 crores during FY 22-23.
Assets from key ministries that comprised this value include Ministry of Road Transport & Highways, Ministry of Railways, Ministry of Power, Ministry of Coal, Ministry of Ports Shipping & Waterways, Ministry of Petroleum & Natural Gas, Department of Telecom and Ministry of Civil Aviation.
First Published: Apr 5, 2023 8:36 PM IST
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