National Monetisation Pipeline
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.
- 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.
- The Union Budget 2021-22, laid a lot of emphasis on asset monetisation as a means to raise innovative and alternative financing for infrastructure.
- In her Budget speech, Sitharaman had said that monetising operating public infrastructure assets was a very important financing option for new infrastructure construction.
- An asset monetisation dashboard will also be created for tracking the progress and to provide visibility to investors.
- The government views asset monetisation as a strategy for the augmentation and maintenance of infrastructure, and not just a funding mechanism.