Government's Disappointment with Asset Monetization Efforts

The core group on asset monetization has expressed its dissatisfaction with the railways for its poor performance in monetizing stations, passenger trains, and freight terminals. Similarly, the tourism department was reprimanded for the slow progress in the Ashok Hotel transaction, highlighting a broader issue of underperformance across various government departments.

The panel, led by cabinet secretary TV Somanathan, also criticized the telecom department for abandoning plans to monetize BSNL’s telecom tower, emphasizing the need for alternative funding sources beyond government support. The petroleum ministry was urged to revive its gas pipeline network monetization plans, aiming for a Rs 30,000 crore target in the next cycle.

Challenges and Targets Ahead

Despite the challenges, the government remains committed to its asset monetization strategy, with a Rs 10 lakh crore target by 2030. The road transport ministry has been set an ambitious target of monetizing 35,000 km to raise Rs 3.5 lakh crore, significantly higher than previous goals. This reflects the government's determination to overcome bureaucratic hurdles and achieve its financial objectives.

However, the recent directive from the road transport ministry to NHAI to halt the bidding process for TOT projects may slow down highway monetization efforts. The ministry has called for a detailed analysis of monetization methods, suggesting a shift towards more beneficial approaches like InvIT and securitization of toll receivables.