Govt to raise ₹16.3K cr by monetising oil and gas assets in next four years

The Centre plans to monetise DSFs, storage assets, GAIL Gas equity and dark fibre leases to raise Rs 16,300 crore by FY30 as part of NMP 2.0, targeting both midstream and upstream segments

The government is targeting raising ₹16,300 crore by fiscal 2029-30 (FY30) through monetisation of assets under the Ministry of Petroleum and Natural Gas (MOPNG).

 

As part of the second edition of the National Monetisation Pipeline (NMP), the government has identified four assets for monetisation during FY26 and FY30, including discovered small fields (DSF), storage facilities for liquids and gases, equity dilution of GAIL Gas and dark optic fibre leasing.

 

“The asset pipeline includes a mix of brownfield and greenfield projects spread across the gas distribution, pipeline, storage and upstream segments. These comprise revenue-generating midstream assets, market-linked utility infrastructure and select upstream fields with extractable reserves,” an official statement said.

 

In addition, partial equity divestment has been proposed in identified subsidiaries to mobilise capital for future sectoral investments. Discovered small fields, proposed to be monetised through competitive bidding under a production-linked concession model, are expected to raise ₹7,500 crore. The government targets to raise ₹1,500 crore every year till FY30 through DSFs.

 

Asset monetisation of petroleum storage facilities for liquids and gases is expected to create value of ₹5,300 crore by FY30. State-run Indian Oil Corporation Ltd (IOCL) is expanding its Panipat refinery from 15 million tonnes per annum (MTPA) to 25 MTPA by constructing off-site tankages and storage facilities. The capital investment in creation of these facilities shall be the monetisation value.

 

Meanwhile, the government aims to raise ₹3,100 crore by equity dilution in GAIL Gas Limited. The proceeds from the equity sale would constitute its monetisation value, the government said. Asset monetisation of ₹400 crore is targeted through lease of about 11,000 kilometres of dark fibre owned and operated by public sector undertakings (PSUs) and joint ventures under India’s oil ministry.