- Title: India to monetise $81 bln worth of state assets over next 4 years
- Date: 23rd August 2021
- Summary: NEW DELHI, INDIA (AUGUST 23, 2021) (ANI - NO USE INDIA) INDIAN FINANCE MINISTER, NIRMALA SITHARAMAN AND OTHERS SEATED AT NEWS CONFERENCE SITHARAMAN SITTING OFFICIALS SEATED (SOUNDBITE) (English) CHIEF EXECUTIVE OFFICER GOVERNMENT THINK TANK NITI AAYOG, AMITABH KANT, SAYING: "The pipeline of government of India assets which we are looking at over a 20 to 25 period covers about 14 percent of the Centre's outlay under the national infrastructure plan about roughly 6 lakh crore (6 trillion rupees ($80.90 billion)).It covers 12 line ministries and departments and 20 plus asset classes. The top three sectors by value are road, railways, power." MUMBAI, MAHARASHTRA, INDIA (FILE - FEBRUARY 01, 2021) (ANI - NO USE INDIA) PASSENGERS WAITING FOR TRAIN AT RAILWAY PLATFORM SIGNBOARD READING (ENGLISH AND HINDI) 'DADAR'/PASSENGERS ON RAILWAY STATION TRAIN COMING TO STOP AS PASSENGERS WAIT/PASSENGERS GETTING ON TRAIN PASSENGERS SITTING INSIDE TRAIN AS OTHERS TAKE SEATS VARIOUS OF TRAINS PLYING TRAIN COMING TO STOP NEW DELHI, INDIA (FILE - APRIL 25, 2020) (ANI - NO USE INDIA) VARIOUS OF PLANES ON TARMAC AT NEW DELHI'S INDIRA GANDHI INTERNATIONAL AIRPORT RAMGARH, JHARKHAND, INDIA (FILE) (ORIGINALLY 4:3) (ANI - NO USE INDIA) VEHICLE CARRYING COAL COAL CRANE LIFTING COAL AN PUTTING IT INTO VEHICLE
- Embargoed: 6th September 2021 17:35
- Keywords: $81 bln Amitabh Kant India New Delhi Nirmala Sitharaman government power privatisation railways road state assets
- Location: NEW DELHI/MUMBAI, MAHARASHTRA/ RAMGARH, JHARKHAND, INDIA
- City: NEW DELHI/MUMBAI, MAHARASHTRA/ RAMGARH, JHARKHAND, INDIA
- Country: India
- Topics: Asia / Pacific,Government/Politics
- Reuters ID: LVA001ERI1WEN
- Aspect Ratio: 16:9
- Story Text: EDITORS PLEASE NOTE: THIS EDIT CONTAINS 4:3 MATERIAL
India plans to monetise 6 trillion rupees ($80.90 billion) worth of state assets over the next four years under a plan announced earlier in 2021/2022 budget to boost infrastructure spending and spur economic growth in Asia's third-biggest economy.
The Indian government aims to hand already built assets such as gas pipelines, roads, railway stations and warehousing facilities among others over to the private sector to operate on a long-term lease, Amitabh Kant, chief executive of government think tank NITI Aayog, told a news conference on Monday (August 23).
The top five sectors, estimated by their potential for monetisation, are roads, railways, power, oil and gas pipelines, and telecommunication.
The government aims to monetise assets worth 880 billion in the current fiscal year that began in April, and a transparent mechanism would achieve "a fair value," Kant said.
Finance Minister Nirmala Sitharaman said the program would give an impetus to economic growth.
Earlier this year, Prime Minister Narendra Modi's administration announced a privatization plan which would leave government ownership only in a few critical sectors.
Although coronavirus lockdowns and the subsequent downturn have slowed the privatization process, the government still hopes to raise 1.75 trillion rupees from such sales in the current fiscal year to March 2022.
In the current fiscal year, the government expects to list state-run Life Insurance Corp. of India, and privatize state-run oil refiner Bharat Petroleum Corp Ltd. and state carrier Air India Ltd.
Proceeds from privatization are crucial for India, which witnessed a record fiscal deficit of 9.3% in the last fiscal year to March 2021, when the economy contracted by 7.3%.
By the end of the current 2021-22 fiscal year, the government aims to cut the fiscal deficit to 6.8% and revive economic growth to 10.5%.
($1 = 74.16M rupees)
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