Sources predict that the Indian government will fall short of its fiscal year 2018 asset monetisation target.

by Mapping Returns
Sources predict that the Indian government will fall short of its fiscal year 2018 asset monetisation target.

According to sources speaking to PTI, the Indian government has so far monetized assets worth Rs 33,422 crore under the National Monetization Pipeline in the fiscal year that began on April 1. However, New Delhi is anticipated to fall short of the overall asset monetization target.

According to sources, the government’s most recent assessment indicates that achieving the overall asset monetisation target of Rs 1,62,422 crore in 2022–23 may result in a shortfall of Rs 38,243 crore. On November 14, Nirmala Sitharaman, the minister of finance, met with Parameswaran Iyer, the CEO of Niti Aayog, to discuss the implementation of the NMP.

They stated that the current fiscal’s “likely recovery from asset monetisation under NMP has now been projected at Rs 1,24,179 crore.”

In particular, at a time when New Delhi would prefer to have more money in its coffers and ramp up spending to support a nascent post-pandemic recovery, which on the other hand is threatened by galloping inflation pace amid the geopolitical tensions, collections from asset monetisation are crucial for India to achieve its fiscal deficit target.

The asset monetisation objective is likely to be surpassed by the ministries of coal, mines, ports, and shipping, while the ministry of road transport and highways is on track to meet the goal, according to the sources.

The Ministries of Power, Railways, Civil Aviation, and Oil and Gas are probably going to miss the mark.

In comparison to a total monetisation target of Rs 30,000 crore for this fiscal year, the Coal Ministry has so far raised the maximum money by selling assets worth Rs 17,000 crore.

In contrast to the whole aim of Rs 32,855 crore, the Ministry of Road, Transport, and Highways has successfully raised Rs 4,100 crore.

Only 411 out of the anticipated 7,299 crores have been raised by the Civil Aviation Ministry so far in the current fiscal year.

The Ministry of Power has so far met its monetary goal of Rs 2,000 crore against its overall fiscal year aim of Rs 15,308 crore, while the Ministry of Railways has raised Rs 1,829 crore so far compared to its whole fiscal year target of Rs 30,000 crore.

According to sources, the government is thinking about making ministries’ budgetary support subject to monetisation.

Additionally, ministries have been challenged to identify new asset classes in order to meet their goals.

The priority states with a monetisation foundation are Gujarat, Maharashtra, Karnataka, Uttar Pradesh, Madhya Pradesh, and Odisha, according to sources.

State expressways, motorways, transmission networks, urban terminals, and state warehouses are all considered potential assets in these states.

According to insiders, sectors facing difficulties have been asked to hasten the rollout of transactions. The government think tank NITI Aayog has scheduled six state-specific workshops.
Sitharaman had made the Rs 6 lakh crore-NMP over four years announcement in August of last year in order to unleash value in infrastructure assets across industries.

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