The Union government’s asset monetisation plan seems to be facing resistance from government departments and public sector enterprises (PSEs). According to a news report, PSEs in the oil and gas sector, such as Hindustan Petroleum Corporation, Indian Oil Corporation, and GAIL, may not go ahead with the pipeline monetisation plan. Another report suggested the Ministry of Railways and Department of Telecommunications are also lowering their target for asset monetisation, and will depend more on internal resources and budgetary support for investment. The government’s target of mobilising Rs 1.62 trillion in the current fiscal year would thus become difficult to achieve. The petroleum sector PSEs consider pipelines core assets and are reportedly not keen to monetise them. These firms are also said to have argued that they are in a better position to mobilise funds from the markets at a lower cost for investment. The government was expecting these firms to transfer part of their pipeline assets to infrastructure investment trusts and raise resources.
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First Published: Thu, June 02 2022. 22:22 IST