Government’s plan to monetise railway property by permitting personal sector gamers to function trains didn’t entice buyers as a result of improper structuring, so the railway ministry is it afresh, authorities assume tank Niti Aayog’s CEO Amitabh Kant has stated.
Addressing a convention on Friday, Mr Kant stated that the personal sector will make investments provided that there are assured returns. “Therefore good project structuring is the key to success of any asset monetisation deal. Obviously, the railways trains project was not well structured, it did not attract good private sector participants. On the top of that, IRCTC was also bidding for railway trains,” he stated.
“They lacked a good amount of structuring and therefore both the railway trains and the railway stations are being re-looked at, re-examined by the railway ministry and by the railway minister and they will take a call now how to go about it and what should be the model for that. It is being deliberated by the new minister,” Mr Kant knowledgeable.
Referring to the federal government’s asset monetisation pipeline price Rs 6 lakh crore, he stated all of the property underneath the pipeline have potential for income technology.
“All the Rs 6 lakh crore assets that are listed down in the asset monetisation pipeline, are all assets which have revenue generating possibility and it needs to be well structured and it can easily attract investors into these brownfield assets. These are assets where revenue streams are already flowing in. If the projects are not well structured, you will not get the right bidders, you will not get the right value, you will not serve the interest of the country,” the Niti Aayog CEO elaborated.
Speaking on the convention, division of funding and public asset administration (DIPAM) secretary Tuhin Kanta Pandey stated the coverage introduced in February 2021 for public sector enterprises is now the guiding coverage for divestment.
As per the coverage, the federal government could have naked minimal presence in broad strategic areas.