Govt to monetise assets worth Rs 75,220 crore in coal mining sector in FY23

The government plans to monetise assets worth Rs 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 Rs 52,200 crore, followed by Rs 20,320 crore from projects on Mine Developer and Operator (MDO) model, Rs 2,000 crore from discontinued mines and Rs 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 Rs 6,060 crore, the ministry said.

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

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

"...39 coal blocks are taken for monetisation having total value of Rs 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 Rs 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 first-mile connectivity projects for building coal silos/ mechanised loading, operationalisation of four discontinued/ abandoned projects and commercial auction of mines, it had said.

Also Read: Infosys looking into I-T portal glitch: Income Tax Department after user complaints 

Also Read: India to ramp up domestic coal output to lessen dependence on imports: Moody's