According to an official release, Finance Minister Nirmala Sitharaman will launch the National Monetization Pipeline (NMP) on Monday. The National Monetisation Pipeline will identify the government’s infrastructure assets for auction over the next four years.
On Sunday, the Niti Aayog stated that the NMP is a four-year pipeline of brownfield infrastructure assets from the central government. In addition to offering clarity to investors, NMP will act as a medium-term roadmap for the government’s asset monetization initiative.
The Finance Minister made a number of key statements about asset monetization in the Union Budget for 2021-22. Moreover, she emphasized that the government is searching for innovative ways to raise funds.
Why do we need National Monetization Pipeline (NMP)?
The NMP aims to attract more foreign investors and encourage alternate financing for infrastructure assets.
Sitharaman stated in her Budget speech that monetizing operating public infrastructure assets was a crucial financing option for new infrastructural development. The government will establish a National Monetisation Pipeline of potentially monetizable brownfield infrastructure assets. A dashboard for asset monetization will also be built to track progress and provide visibility to investors.
The government views asset monetization as a strategy for infrastructure enhancement and maintenance, instead of only a funding mechanism. According to Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey. The government is finalizing Rs 6 lakh crore worth of infrastructure assets for monetization. This includes national highways, mobile towers, stadia, railway stations, and electricity grid pipes.
“A national monetization plan of roughly Rs 6 trillion is in the process,” Pandey said. He also mentioned that it will include assets such as pipelines, electricity grid pipes, national highways, ToT (toll-operate-transfer), and so on. The launch of the NMP book will be in the presence of Niti Aayog Vice Chairman Rajiv Kumar and Niti Aayog CEO Amitabh Kant. As well as, the Secretaries of relevant ministries whose assets constitute the monetization pipeline.
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