State-owned Indian petroleum assets, GAIL and NHAI selected for monetization

State-owned Indian petroleum assets, GAIL and NHAI selected for monetization

The government has identified the assets of large state-owned enterprises to be monetized

The government has identified the main assets of major public sector companies (PSU) such as National Highway Authority of India (NHAI), Airports Authority of India (AAI), National Thermal Power Corporation (NTPC), Indian Oil Corporation (IOC), GAIL, Hindustan Petroleum Corporation Limited (HPCL) and many others for monetization as part of its National Monetization Pipeline (NMP) between 2022 and 2025.

Other PSUs whose assets he has identified for monetization include Mahanagar Telephone Nigam Limited (MTNL), Bharat Sanchar Nigam Limited (BSNL), NHPC, Food Corporation of India (FCI) and Neyveli Lignite Corporation.

According to sources from the Ministry of Finance, under the NMP, the basic infrastructure assets of these selected power units have been identified because, through the program, the government plans to strengthen its finances, which have been severely affected. mainly due to the coronavirus pandemic during the almost two fiscal years. .

While the government has exhausted the possibility of divesting its stake in major PSUs, the NMP was designed to offer assets owned by blue chip public entities on lease to private entities, through which it aims to raise funds. until 2025.

What he calls the “unlock value” will translate into revenue generation for the government, for which he has already started identifying the assets of these PSUs.

Finance Minister Nirmala Sitharaman announced in August this year the NMP, which plans to increase the crore to Rs 6 lakh by monetizing the operating assets of the central government over a four-year period ending in 2025.

The NMP is designed to unlock the value of investments in brownfield public sector assets by tapping institutional and long-term capital. Thus, roads, railways, power plants, gas pipelines, airports, ports, warehouses, etc. government owned will be leased for a specified period to non-government entities.

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