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Ministry of Railways unveils plans to achieve Rs 17,810 cr target

Monday, 27 Sep 2021
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The Ministry of Railways has identified several asset classes and is working on several models to achieve the target of raising Rs 17,810 crore under the National Asset Monetisation Pipeline (NMP).

The Ministry informed that the request for proposal for 12 stations has been finalised and five were in the final stage. Proposals for three stations have been sent to the public private partnership approval committee (PPPAC). The proposals for the remaining stations were in various stages of development.

It also informed that the transaction adviser for three viable hill railway projects will be appointed by the end of September 2021 and the feasibility studies have been completed for bundling of these three projects.

The bid process is likely to be wrapped up with FY22. Work is also underway for monetising the remaining stadia under the Railways and is likely to be completed by the end of November 2021.

The Ministry also expects to award seven railway colonies for redevelopment by December 2021 and has already awarded three such entities. It is also reworking the model concession agreement (MCA) for running private passenger trains after the poor response to the bids earlier in 2021.

The Railways received a cold response from the private sector on offers to operate mail and express trains and received only two bids, including from a public sector unit within the railways to run two of the 12 of the planned hubs.

The ministry will also identify 265 good sheds locations by the end of September for monetisation through a suitable structure. It has also appointed a consultant to finalise the transaction structure for monetisation of track and overhead equipment.

The Centre has unveiled Rs six lakh crore asset monetisation plan over the next four years. Assets which have been identified include roads, power transmission and generation, gas pipelines, warehousing, Railways, Telecom, 25 airports, 31 projects in nine major ports, coal and mineral mining, sports stadia, redevelopment of colonies. Only brownfield assets will be considered and land has been left out.

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