Government finalising roadmap for asset monetisation: Report

Amidst a series of meetings being held for faster implementation of Union Budget 2021 announcements, the government is also finalising a roadmap for core and non-core asset monetisation.

CNBC-TV18 has learned that discussion is underway on preferred models for monetisation, legal regulatory framework as well as governance ecosystem for public sector InvITs. The government is mulling Special Purpose Vehicle (SPV) structure for monetisation of non-core assets.

It also plans to address investors' concerns with regards to privatisation and monetisation to ensure enough interest in the privatisation plan.

The government has identified 2000 acres of land as part of non-core assets for MTNL, BSNL, BEML, HMT in this current financial year. It expects to garner Rs 50,000 core from monetisation of land assets through redevelopment and sale. The plan is also to amend the Airport Authority of India Act to allow commercial use of its land.

Some amendment in the Stamp Duty Act, Income Tax Act is also expected to facilitate demerger of non-core assets of public sector undertakings.

Rs 17,000 crores is expected from monetisation of IOC, GAIL, and HPCL pipelines, Rs 1.68 lakh crores from power grid transmission network, InvIT for 5 power grid assets worth Rs 7,200 crores are at an advance stage, and over 30 shipping projects are identified for monetization between FY21 to FY24.

Transaction, structuring, and approvals of several privatization proposals like Air India, BPCL, SAIL, Pawan Hans are already underway at various levels.