Govt plans to monetize assets worth Rs 75,220 crore in the coal mining sector in FY23

The government plans to monetize assets worth Rs 75,220 crore in the coal mining sector in the current financial year.

The monetization of coal blocks is likely to generate 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 monetization plan for 2022-23.

The monetization figures are tentative.

The asset monetization 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 monetization 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 the MDO model, and Rs 1,512 crore from Coal Bed Methane (CBM) projects.

''...39 coal blocks are taken for monetization having a total value of Rs 28,986 crore. Monetization value of 39 mines is based on a 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 monetization during FY22-25.

These include 17 projects on the MDO model, establishment of three washeries, one coal gasification plant, 35 identified first-mile connectivity projects for building coal silos/mechanized loading, operationalization of four discontinued/ abandoned projects and commercial auction of mines, it had said.

The total indicative value of assets considered for monetization is estimated at Rs 28,747 crore over FY 2022-25, it had said.

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

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)