Coal Ministry targets asset monetisation worth around Rs 550 bn in FY25
COAL & MINING

Coal Ministry targets asset monetisation worth around Rs 550 bn in FY25

The Union Ministry of Coal revealed its aim to monetize assets worth Rs 547.21 billion in the financial year 2025, representing a 9% increase from the target set in FY24, which was Rs 501.18 billion. In response to a query received via email, the coal ministry stated, "The projected target concerning the asset monetization plan for FY 24-25 is Rs 547.21 billion. In FY 2023-24, asset monetization amounted to Rs 551.48 billion until February 2024, surpassing the NITI Aayog target of Rs 501.18 billion."

The primary methods for asset monetisation for the ministry would involve commercial auctions of mines and the development of mines through the 'mining developers and operators' (MDO) model. The ministry engages third-party MDOs, including private entities, in coal mines through global tenders. The individual stated, "The target for FY25 is expected to surpass that of FY24. It is likely to be comfortably achieved, similar to the current fiscal year (FY24). Auctions and MDOs, where mines of public sector companies are allocated to an MDO for development, will be the main avenues for monetisation."

In 2020, the government initiated the commercial mining of coal by private entities and has thus far auctioned 91 mines. However, the interest among private firms in acquiring mines has gradually waned over the years, with many companies having already met their captive requirements. Efforts have been made by the government to render coal mining and the auction process more appealing.

The Union Ministry of Coal revealed its aim to monetize assets worth Rs 547.21 billion in the financial year 2025, representing a 9% increase from the target set in FY24, which was Rs 501.18 billion. In response to a query received via email, the coal ministry stated, The projected target concerning the asset monetization plan for FY 24-25 is Rs 547.21 billion. In FY 2023-24, asset monetization amounted to Rs 551.48 billion until February 2024, surpassing the NITI Aayog target of Rs 501.18 billion. The primary methods for asset monetisation for the ministry would involve commercial auctions of mines and the development of mines through the 'mining developers and operators' (MDO) model. The ministry engages third-party MDOs, including private entities, in coal mines through global tenders. The individual stated, The target for FY25 is expected to surpass that of FY24. It is likely to be comfortably achieved, similar to the current fiscal year (FY24). Auctions and MDOs, where mines of public sector companies are allocated to an MDO for development, will be the main avenues for monetisation. In 2020, the government initiated the commercial mining of coal by private entities and has thus far auctioned 91 mines. However, the interest among private firms in acquiring mines has gradually waned over the years, with many companies having already met their captive requirements. Efforts have been made by the government to render coal mining and the auction process more appealing.

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