Coal ministry eyes asset monetization worth nearly ₹55,000 cr in FY25
₹54,721 crore in FY25, about 9% higher than the ₹50,118 crore target set in FY24. In the 11 months to February, the ministry had surpassed its FY24 target, having monetized assets worth ₹55,148 crore. "The projected target with reference to asset monetization plan for FY 24-25 is ₹54,721.06 crore.
₹55,148 crore of asset monetization has been done in FY 2023-24 till February 2024 against NITI Aayog Target of ₹50,118 crore," the coal ministry said in response to a mailed query. A person aware of the development said commercial auction of mines and development of mines through the ‘mining developers and operators’ (MDO) model would be primary routes to asset monetization for the ministry. The ministry engages third-party MDOs including private players in coal mines through global tenders.
"The target would be higher than FY24. In FY25 too, it is likely to be achieved comfortably as in the case of this fiscal (FY24). Auctions and MDOs, (in which) mines of public sector companies are given to an MDO for development, would be the primary ways of monetization," the person said.
In 2020, the government opened up coal for commercial mining by private players and has so far auctioned 91 mines. However, over the years the interest in mines among private firms has seen a saturation with the captive requirement of several companies largely being met. The government has made efforts to make coal mining and the auction process more lucrative.
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