Tirupati Railway Station to Rajahmundry Airport: Centre to monetize key assets in Andhra

Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on Monday launched the National Monetization Pipeline' (NMP), the asset monetization pipeline of Central ministries and public sector entities.

Under the pipeline, roads, transport and highways, railways, power, pipeline and natural gas, civil aviation, shipping ports, and waterways, telecommunications, food and public distribution, mining, coal, and housing and urban affairs will be monetized.

The Union Government has announced its intention to "monetize" by letting the private sector bid for operating such assets for certain years by paying the amount upfront, but the government without giving away title to the underlying assets. The private operators can operate these assets such as National Highways for a certain period of time.

Railways

The finance ministry has identified Tirupati Railway Station for redevelopment under Public-Private Partnership (PPP) with the primary objectives of providing world-class passenger amenities, making them hubs of economic development and re-establishing them as the nerve centers.

"This is envisaged to be achieved through leveraging the commercial development opportunity of land and air space surrounding the station and to create seamless travel and facilities experience for passengers with the aim to future-proof these important travel nodes," reads the NITI Aayog National Monetization Pipeline report.

Airport

Two Airports in Andhra Pradesh have been considered for monetization. The finance ministry has decided to monetize Vijayawada (gangavaram) Airport in 2022. The ministry is estimating the Capex of Rs 600 crore. Similarly, Rajahmundry Airport will be monetized in 2025 and Capex estimation is around Rs 130 crore. These airports are currently owned by the Airport Authority of India with the partnership of the state government.

Ports

Visakhapatnam Port, India's third-largest state-owned port has also been listed for monetization by the finance ministry. Four projects of Visakhapatnam Port Trust have been identified for private sector participation for improved operational efficiency and capacity utilization of existing port assets.

During 2022, the government has targeted the development of West Quay North (WQ-7 & WQ-8) berths with mechanized handling facilities for handling bulk cargoes. The government is expecting an estimated investment of Rs 288 crore.

Similarly, the finance ministry is expecting mechanization of East Quay (EQ-7) berth and mechanization of WQ-6 berth by financial year 2023 with an estimated investment of Rs 450 crore. By the financial year 2024 the ministry is expecting mechanization of EQ-6 berth with an estimate of Rs 250 crore.