Norms may be Eased to Make Asset Monetization Lucrative for Pvt Cos

The center could  consider relaxing some condition to make it more Uncreative for the private sector to participate in the asset monetization programmers of railways, warehouse, and oil and gas sectors, some ministries suggested change  in asset monetization  contracts at a meeting called by cabinet secretary Rajiv Gauba on Friday to take stock of the government’s National monetization  Plan (NMP), officials said” Some ministries highlighted that private players were not interested in the Current  model. The government is working on the model and will work separately with the concerned ministries on it,” said one of the officials quoted above. The government has set target of 6 lakh Crore through asset monetization in for years (FY2022-25) with Fy23 target pegged at 1.67 lakh Crore. one of the government officials quoted above said the Prime minister’s office (PMO) Will be closely monitoring the progress regarding asset monetization and ministries and department will have to give quarterly reports regarding the progress in asset monetization. Last year against the target of 88,190 Crore for FY22, the government monetized worth 96,000 Crore. Railways mentioned that private players wanted more freedom on pricing in respect of stations and trains.

The ministry of railways had a target to monetize rail assets Worth 17,000 Crore in the last financial year. However, not much head- way was made. For the entire period (till FY20 25), Railways has a monetization target of 1.52 lakh Crore, which includes monetization of 400 stations and privatization of 90 trains and 15 Railways stadia. A governments official added that similar concerns were raised by the ministry of Petroleum and Natural Gas.” The ministry said it is working on a detailed plan in consultation with NITI Analog,” the official added ET had reported on Friday that the cabinet secretary would review the cabinet secretary would review plan. A substantial asset monetization can provide resources for public investment in infrastructure, a key strategy of the government to revive investments and support the economy

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