Centre to monetise assets worth Rs 75,220 cr in coal mining sector

The Centre plans to monetise assets worth Rs 75,220 crore in the coal mining sector in the current financial year (FY). The monetisation of coal blocks is expected to produce a revenue of Rs 52,200 crore, followed by Rs 20,320 crore from projects on the 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 2022-23. The monetisation figures are tentative. The ministry said that the asset monetisation target of NITI Aayog for the coal ministry is Rs 6,060 crore for FY23. The ministry said against the NITI Aayog's target of Rs 3,394 crore for 2021-22, the coal ministry's total monetisation was Rs 40,090 crore. Out of said Rs 40,090 crore, Rs 28,986 crore came from coal blocks, Rs 1,512 crore from Coal Bed Methane (CBM) projects, and Rs 9,592.64 crore from the MDO model. The ministry said around 39 coal mines are taken for monetisation with a total value of Rs 28,986 crore. The monetisation value of 39 coal mines is based on a calculation done by NITI Aayog. During FY22-25, 160 coal mining assets with an estimated worth of Rs 28,747 crore have been identified for monetisation, according to the National Monetisation Pipeline. These comprise 17 projects on the MDO model, one coal gasification plant, establishment of three washeries, operationalisation of four discontinued/ abandoned projects, 35 identified first-mile connectivity projects for building coal silos/ mechanised loading, and commercial auction of coal mines. Over FY 2022-25, the total indicative value of assets assessed for monetisation is estimated at Rs 28,747 crore, it had said. During FY22-FY25, around 761 mineral blocks are likely to be put on auction, it said. Image Source Also read: Govt plans to monetise New Delhi's Ashok hotel run by ITDC