PSUs

Oil pipeline monetisation plan on hols as PSUs opposed to it

By IndianMandarins- 01 Jun 2022
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New Delhi (01.06.2022): GAIL, Hindustan Petroleum and Indian Oil are unlikely to go ahead with the proposed pipeline monetisation plan as they convinced the petroleum ministry that this would be an expensive way to raise capital. The government expected the companies to transfer some of their pipelines to separate infrastructure investment trusts (InvITs) and sell minority stakes in those to raise ₹17,000 crore.
The companies informed the government that their high credit ratings will allow them to raise capital easily and at a much lower cost than any return they would have to offer InvIT investors. Announced in the budget last year, the monetisation plan was aimed at freeing up resources that could then be deployed in new projects, helping boost investment in an economy weighed down by the pandemic. 

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