Central Government Set to Raise Rs 1.50 Lakh Crore from Asset Monetization in FY 2023-24.
Discover how the Central Government and CPSUs set to monetize assets worth Rs 1.50 lakh crore this fiscal year, tapping into sectors like mining, roads, power, and petroleum.
Get insights into the strategies employed, including InvITs and TOTs, and learn about the impact on infrastructure development.
Estimated to get Rs 1.50 lakh crore from asset monetization in the current financial year.
It is estimated that the Central Government and Central Public Sector Enterprises will monetize assets worth Rs 1.50 lakh crore in the current financial year 2023-24.
Central Government Set To Raise Rs 1.50 Lakh Crore: This comes up just short of the Rs 1.75 lakh crore goal.
Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kant Pandey said in a post-budget interview that monetization is continuing in mining, roads, and power sectors through infrastructure investment trusts (InvITs), toll-operated transfers (TOTs) and this has started happening in the petroleum sector also.
He said the proceeds of asset monetization are not visible in the budget. In most cases the income accrues to the enterprise, not the government.
The objective of asset monetization is to harness private sector investment to create new infrastructure. This comes up just short of the Rs 1.75 lakh crore goal.
The strategic sale of IDBI is expected to be completed in the next financial year.
DIPAM Secretary said that the process of privatization of IDBI Bank is going on and financial bids will be invited after getting the regulator’s approval.
He assured that the strategic sale of the bank will be completed in the next financial year.
The government is selling about 61 percent stake in IDBI Bank along with LIC and had invited bids from buyers in October 2022.