Coal Ministry Tops Asset Monetisation Chart Despite FY25 Miss
The Ministry of Coal has emerged as the top performer under the Centre’s first National Monetisation Pipeline (NMP), exceeding its four-year target by ₹63,000 crore, despite falling short in FY25, according to government data reviewed by Moneycontrol.
Launched in FY22, the NMP aimed to raise ₹6 lakh crore by monetising core central government assets over four years. The Coal Ministry’s cumulative monetisation stood at ₹2 lakh crore against its target of ₹1.38 lakh crore, marking a 45% overachievement. This places it well ahead of other ministries, including the Ministry of Road Transport and Highways, which ranked second though its final numbers are yet to be disclosed. Asset monetisation involves unlocking economic value from underutilised public infrastructure like roads, mines, airports, and pipelines. The coal ministry’s success has largely been attributed to sectoral reforms such as commercial coal mining auctions, Mine Developer and Operator (MDO) models, and revenue-sharing agreements with Coal India Ltd (CIL) and its subsidiaries.
One notable achievement was the monetisation of the Dugda Coal Washery in Bokaro, Jharkhand – India’s first such transaction involving a coal washery. Executed by Bharat Coking Coal Ltd (BCCL), a CIL subsidiary, the deal marked a milestone in the ministry’s broader plan to modernise the coal sector and reduce import dependency. Since the launch of commercial mining in 2020, 125 coal mines have been auctioned in 11 rounds, with a combined annual production capacity of over 273 million tonnes. “By leveraging private sector investment and expertise, the ministry has significantly enhanced efficiency and reduced wastage across coal infrastructure,” said a senior official. Despite its strong performance over the entire NMP period, the ministry fell short of its FY25 target of ₹54,722 crore, managing ₹46,873 crore, or 86%. Officials attributed the shortfall to project delays that pushed some proposals into the next financial year. In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced a second asset monetisation plan targeting ₹10 lakh crore in investments over 2025–30. Details are being finalised by NITI Aayog, and new ministry-wise targets are yet to be released.
Officials remain optimistic. “This is not a setback. Over the four-year span, this is a one-off. We continue to focus on optimising coal assets and expanding domestic coal washing capacity,” said a second official.
