GS Paper - 3 (Economy)

Finance Minister on 23 August 2021 will launch the National Monetisation pipeline (NMP), which will list out the government's infrastructure assets to be sold over the next four-years. The NMP comprises a four-year pipeline of the central government's brownfield infrastructure assets. Besides providing visibility to investors, NMP will also serve as a medium-term roadmap for the asset monetisation initiative of the government, the Niti Aayog said in a statement on 22 August 2021.

What

  1. A national monetisation plan of about Rs 6 trillion is in the offing which will have a range of assets from pipelines to power grid pipelines to national highways, ToT (toll-operate-transfer) and so on.
  2. The Union Budget 2021-22, laid a lot of emphasis on asset monetisation as a means to raise innovative and alternative financing for infrastructure.
  3. In her Budget speech, Sitharaman had said that monetising operating public infrastructure assets was a very important financing option for new infrastructure construction.
  4. An asset monetisation dashboard will also be created for tracking the progress and to provide visibility to investors.
  5. The government views asset monetisation as a strategy for the augmentation and maintenance of infrastructure, and not just a funding mechanism.