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New Delhi: Rs 6 lakh crore of the National Monetisation Pipeline (NMP) was unveiled by finance minister Nirmala Sitharaman on Monday, 23rd August 2021. National Monetisation Pipeline is all about brownfield assets where investment is already being made, where there are assets either languishing or not fully monetized or under-utilized, Nirmala Sitharaman emphasized.
Also, the government will only monetize under-utilized assets and the ownership will remain with the centre, the finance minister Nirmala Sitharaman informed.
The brownfield assets will be monetarized by bringing in private participation, who have to hand over the assets to the government after a pre-determined period. The money obtained through the monetization exercise will be channelized into infrastructure building.
Further, the government will monetize assets worth ₹ 1.6 lakh crore from the roads sector, ₹ 1.5 lakh crore from the railway sector, and ₹ 79,000 crores from the power sector, Mr. Kant said. The centre will also monetize ₹ 20,800 crores from airports, ₹ 13,000 crores from ports, ₹ 35,000 crores from telecom, ₹ 11,500 crores from stadiums, and ₹ 45,200 crores from power transmission sectors.
Infra assets worth ₹ 6 lakh crore will be monetized across the rail, road, and power sectors over 4 years, and "projects have been identified to monetize the assets" NITI Aayog CEO Amitabh Kant highlighted.
Asset monetization is the process of creating new sources of revenues by unlocking the value of unutilized and underutilized public assets, according to the Department of Investment and Public Asset Management website.
The entire exercise will generate greater value and unlock resources for the economy, stated the finance minister, and most of the asset monetization will take place either through the InvIT mode or public-private partnerships.
The ministries of roads, transport & highways, railways, power, pipeline & natural gas, civil aviation, shipping ports & waterways, telecommunications, food & public distribution, mining, coal, housing, and urban affairs will be a part of the National Monetisation Pipeline, the Finance Ministry elaborated. Moreover, the government is committed to involving the private sector and private capital to develop infrastructure, the Niti Aayog Vice Chairman Rajiv Kumar said.
