Budget 2023: Monetisation of Indian Railways' assets on agenda
In 2021-22, the Railway Ministry had set a target of monetising railways assets worth Rs 17,000 crore, however due to poor response from the private sector, the target could not be achieved.
![Budget 2023: Monetisation of Indian Railways' assets on agenda Budget 2023: Monetisation of Indian Railways' assets on agenda](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_850x478/public/2023/01/19/222251-railbudget.jpg?itok=TA4Rrqoz&c=25be1d5822a150983804cec11b93525f)
Monetisation of railways' assets is likely to be one of the key agenda items in the forthcoming Union Budget for 2023-24, which Finance Minister Nirmala Sitharaman is going to present on February 1.
In 2021-22, the Railway Ministry had set a target of monetising railways assets worth Rs 17,000 crore, however due to poor response from the private sector, the target could not be achieved.
Even this fiscal's target of railways' asset monetisation of Rs 57,000 crore is likely to be halved as the department has not been able to meet it till now, sources aware of developments, said.
It is likely to be brought down to around Rs 25,000 crore as the Railway Ministry has not been able to monetise its assets during the current fiscal and only three months are left for 2022-23 to end, the sources added.
Despite lack of enthusiasm shown by investors in railways' assets, the government is bullish on pushing them and in the forthcoming Union Budget, it is likely to set a target, albeit a reasonable one, for monetisation of railways assets, the sources said.
Under asset monetisation, the government transfers revenue rights to private parties for a specified transaction period in return for a revenue share and commitment of investments in the assets.
The assets are monetised through models like Public Private Partnership (PPP) - Operate Maintain Transfer (OMT), Toll Operate Transfer (TOT), and Operations, Maintenance and Development (OMD).
Under monetisation, the government does not sell assets, but leases them for a certain period for redevelopment and operations by a private entity, while continuing to retain their ownership.
Buy BEL shares - Check price target | BEL Dividend 2023
EXCLUSIVE: Govt may announce PLI schemes for 6 new sectors in Budget
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/markets/stocks/photo-gallery-this-tata-group-stock-turned-every-rs-10000-of-investment-into-rs-11300-in-just-a-week-investors-richer-by-42722-crore-rupees-any-guesses-share-market-news-304023](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307143-tradingpexels.jpg?itok=rw4R7EfH)
A Tata group stock just turned every Rs 10,000 of investment into Rs 11,300 in just a week, investors richer by Rs 42,722 crore; any guesses?
![https://www.zeebiz.com/markets/stocks/photo-gallery-large-cap-midcap-stocks-shares-to-buy-for-long-term-check-out-targets-nifty-sensex-303617](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/25/306716-stockks.jpg?itok=KJTrFUIK)
Stocks to buy for long term: Analysts suggest buying these 5 largecap, 4 midcap scrips; check out targets
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-retirement-planning-budget-2024-nirmala-sitharaman-announcement-how-nps-rulebook-change-can-increase-corpus-income-and-monthly-pension-by-40-compound-return-303984](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307102-indian-currency-pixabay-take.jpg?itok=kN21EW-9)
How your NPS retirement corpus and monthly pension can jump by 40% after this rule change; get details
![https://www.zeebiz.com/personal-finance/photo-gallery-senior-citizen-savings-scheme-scss-2024-interest-rate-calculator-post-office-how-to-get-inr-rs-50000-interest-retirement-planning-guaranteed-return-maturity-amount-small-savings-303930](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307042-fd-interest-file.jpg?itok=45ZbBRWM)
How much investment do you need in this senior citizen scheme to get Rs 50,000 quarterly interest? Know here
08:14 AM IST