Asset monetisation target for states may be set at Rs 3 trillion

Central ministries given a target to monetise assets worth Rs 2.5 trn over 3 years

The national asset monetisation pipeline may set a target of Rs 3 trillion for states to monetise their assets over the next four to five years. States are being nudged by the central government and the NITI Aayog, and are being made aware of mo­dels they can use to monetise assets. They are toll-operate-transfer, operate-maintain-transfer, infrastructure (infra) investment trusts, and real estate investment trusts, said a top government official.

Union Finance Minister Nirmala Sitharaman recently chaired a workshop on asset monetisation, briefing state governments on the benefits of asset monetisation. The national asset monetisation pipeline framework, being prepared by CRISIL Infrastructure Advisory, is exp­ected to lay out the target for states and the Centre.

Separately, central ministries have been given a target of Rs 2.5 trillion for monetising their assets over the next three years starting 2021-22 (FY22), said the official. This target was being considered for just the next fiscal year in earlier discussions, but it was felt to be too steep, said another official.

“For FY22, the target for central ministries may be fixed at around Rs 1.5 trillion,” he added.

 The highest target for the next three years has been set for the Ministry of Railways at Rs 90,000 crore, which is expected to include monetising railway stations, operationalising passenger trains by private companies, and dedicated freight corridors. This would be followed by the DoT being asked to monetise Rs 40,000 crore.  The target for the road ministry is Rs 30,000 crore.  These targets were set in a meeting convened by the Cabinet secretary. The proceeds of the exercise will be used for investment in infra projects, and meet the deficit for investment under the Rs 111-trillion National Infrastructure Pipeline, said another official.