Finance Minister Launches ‘National Monetization Pipeline (Volumes 1 & 2)

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On Monday, August 23, the Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, launched the asset monetisation pipeline of Central ministries and public sector entities titled ‘National Monetisation Pipeline (NMP Volumes 1 & 2)’.

Developed by NITI Aayog, in consultation with infrastructure line ministries, the pipeline is based on the mandate for ‘Asset Monetisation’ under Union Budget 2021-22.

NMP estimates aggregate monetisation potential of Rs 6 lakh crores through core assets of the Central Government, over a four-year period, from Fiscal Year (FY) 2022-2025.

Volumes 1 and 2 of the report on NMP was released in the presence of Vice Chairman (NITI Aayog), CEO (NITI Aayog), and Secretaries of infrastructure line ministries included 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-along with Secretary (Department of Economic Affairs) and Secretary (Department of Investment and Public Asset Management).

Sitharaman while launching the pipeline, said, “The Asset Monetisation programme has taken shape because of the vision of our Hon’ble Prime Minister who has always believed in universal access to high-quality and affordable infrastructure to the common citizen of India. Asset monetisation, based on the philosophy of Creation through Monetisation, is aimed at tapping private sector investment for new infrastructure creation. This is necessary for creating employment opportunities, thereby enabling high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare.”

She further enumerated the reforms and initiatives undertaken by the current Government towards accelerated infrastructure development and for incentivizing private sector investments.

This included the recent ‘Scheme of Financial Assistance to States for Capital Expenditure’, which provides incentives to the State Governments thereby recycling the State Government-owned asset for fast-tracking greenfield infrastructure.

“The strategic objective of the programme is to unlock the value of investments in brownfield public sector assets by tapping institutional and long-term patient capital, which can thereafter be leveraged for further public investments,” – asserted by Vice Chairman, NITI Aayog, during the launch.

He emphasized on the modality of such unlocking, which is envisaged to be followed by ways of structured contractual partnership as against privatization or slump sale of assets.

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