Sitharaman launches National Monetization Pipeline to monetize under-utilized assets
Finance Minister Nirmala Sitharaman on Monday launched the National Monetization Pipeline worth Rs. 6 lakh crore. Under the NMP, the government aims to monetize under-utilized public sector assets through the participation of the private sector and unlock the value of "government investments and public money" in infrastructure. The plan comprises a four-year pipeline of the government's brownfield infrastructure assets from the financial year 2022-2025.
NMP first mentioned during Union Budget: Sitharaman
Launching the plan, Sitharaman said the government had first spoken of the NMP during the Union Budget 2021. At the time, it was said that the government was considering innovative ways to raise finances. The NMP will concern those brownfield assets where investments are already being made, but the assets are either languishing or are under-utilized, the Finance Minister said.
'Will monetize assets better by introducing private players'
Sitharaman said, "By bringing in private sector participation, we are going to monetize (the assets) better, and with whatever resource that you obtained by monetization, you are able to put in for further investment into infrastructure building." Private players will have to relinquish the assets to the government after a pre-determined time period, the minister added.
Assets across rail, road, power to be monetized
NITI Aayog CEO Amitabh Kant explained that infrastructure assets worth Rs. 6 lakh crore across rail, road, and power sectors will be monetized over four years. "Projects have been identified to monetize the assets," said Kant. "New models...will enable not just financial and strategic investors but also common people to participate in this asset class thereby opening new avenues for investment."
'Critical toward making India's Infrastructure world-class'
Kant said, "Asset Monetization needs to be viewed not just as a funding mechanism, but as an overall paradigm shift in infrastructure operations, augmentation and maintenance considering private sector's resource efficiencies and its ability to dynamically adapt to the evolving global and economic reality." He described the NMP as a "critical step toward making India's Infrastructure truly world-class."
