Govt may monetise coal mining assets worth ₹75,220 cr in FY23

THE FY23 ASSET MONETISATION TARGET OF NITI AAYOG FOR THE COAL MINISTRY IS ₹6,060 CR

NEW DELHI: The government plans to monetise assets worth ₹75,220 crore in the coal mining sector in the current financial year. The monetisation of coal blocks is likely to generate a revenue of ₹52,200 crore, followed by ₹20,320 crore from projects on Mine Developer and Operator (MDO) model, ₹2,000 crore from discontinued mines and ₹700 crore from washeries, the coal ministry said in its monetisation plan for the 2022-23.

The monetisation figures are tentative.

The asset monetisation target of NITI Aayog for the coal ministry for FY23 is ₹6,060 crore, the ministry said.

Against the NITI Aayog’s target of ₹3,394 crore for 2021-22, the total monetisation of the coal ministry was ₹40,090 crore, it said.

Of the said ₹40,090 crore, ₹28,986 crore came from coal blocks, ₹9,592.64 crore from MDO model and ₹1,512 crore from Coal Bed Methane (CBM) projects.

“...39 coal blocks are taken for monetisation having total value of ₹28,986 crore. Monetisation value of 39 mines is based on calculation done by NITI Aayog,” the ministry said.

According to the National Monetisation Pipeline, 160 coal mining assets with an estimated worth of ₹28,747 crore have been identified for monetisation during FY22-25.

These include 17 projects on MDO model, establishment of three washeries, one coal gasification plant, 35 identified firstmile connectivity projects for building coal silos/ mechanised loading, operationalisation of four discontinued/ abandoned projects and commercial auction of mines, it had said.

The total indicative value of assets considered for monetisation is estimated at ₹28,747 crore over FY2022-25, it had said.

About 761 mineral blocks are expected to be put on auction during FY22-FY25, it had said.