Preparations to sell railway station, passenger trains and goods terminals? Know the full news
The government’s push to generate revenue by monetizing state-owned properties is in full swing. However, the slow progress of certain departments has become a concern. A high-level committee led by Cabinet Secretary T.V. Somanathan has expressed dissatisfaction with the Railways, Tourism, and Telecom departments over their sluggish asset monetization efforts. The Railways, in particular, has underperformed in raising funds through the sale of railway stations, passenger trains, and freight terminals, prompting scrutiny from the committee.
Railways Struggles to Meet Monetization Targets
The Indian Railways had requested a reduction in its asset monetization target to Rs 1 lakh crore, a proposal that was rejected by the committee. Previously, the Railways was given the same target but managed to achieve only 30% of it. As a result, the committee has directed Railway Board Chairman Satish Kumar to explore new and more effective strategies to accelerate progress.
Tourism and Telecom Sectors Face Criticism
The committee also raised concerns over the Tourism Department’s slow progress in the Ashok Hotel deal, emphasizing the need for quicker execution. Additionally, the Department of Telecommunications (DoT) faced reprimands for canceling its plan to sell BSNL towers. The committee highlighted that BSNL, a heavily indebted government telecom company, cannot rely solely on government funding for debt repayment. The sale of its towers could have generated substantial revenue, but the department’s decision to scrap the plan has raised concerns.
Push for Gas Pipeline Sales and Land Monetization
The Petroleum Ministry has been instructed to revive its plan to sell the gas pipeline network, with a goal of raising Rs 30,000 crore in the next phase. Meanwhile, Finance Minister Nirmala Sitharaman has set a target of generating Rs 10 lakh crore by monetizing government assets by 2030. The Ministry of Housing and Urban Affairs, however, has only set a Rs 5,000 crore target from land sales in Delhi, which the committee deemed insufficient.
Monetization of PSU Lands and Infrastructure Projects
The government holds several prime commercial properties in Delhi, which present opportunities for higher revenue generation. Currently, the Ministry of Housing and Urban Affairs is primarily selling properties to government companies and institutions through NBCC, with key locations in East Kidwai Nagar, Naoroji Nagar, and Netaji Nagar. The revenue from selling surplus public sector undertaking (PSU) lands will be separate from the overall Rs 10 lakh crore monetization target, highlighting the government’s focus on PSU land sales.
Ambitious Targets for Road Transport Ministry
In recent years, NHAI and PowerGrid have used Infrastructure Investment Trusts (InvITs) and Toll-Operate-Transfer (TOT) models to sell assets. This time, the Ministry of Road Transport has been assigned an ambitious target of raising Rs 3.5 lakh crore by monetizing 35,000 km of road assets. This goal is 2.7 times higher than the previous target and accounts for 35% of the total monetization target, reflecting the government’s intensified focus on infrastructure asset sales.
