Finance minister 23 August 2021 launched the National Monetisation Pipeline (NMP) which is expected to fetch the government an estimated revenue of Rs 6 lakh crore over four years till FY25. The NMP, which will work in tandem with the National Investment Pipeline (NIP), will bring in investment for underutilised or languishing brownfield units, generating greater value for the government which will in turn help India’s economy.

What

  1. The NMP will comprise of brownfield assets alone and no land will be part of the monetisation process. Further, assets will not change hands and ownership will remain with the government.
  2. Assets put up for investment to the private sector and global investors will be mandatorily handed back to the government after 25 years.
  3. All contractual partnerships that the government will enter into with private players will be executed with full key-performance indicators and performance standards that will be specified before the transition.
  4. NMP is envisaged to serve as a medium-term roadmap for identifying potential monetisation- ready projects, across various infrastructure sectors, by way of structured contractual partnership as against privatization or slump sale of assets.
  5. The aggregate asset pipeline under NMP includes more than 12 line ministries and more than 20 asset classes.
  6. The sectors included are roads, ports, airports, railways, warehousing, gas and product pipeline, power generation and transmission, mining, telecom, stadium, hospitality and housing.

Flashback

  1. The philosophy of asset monetisation is creation of new assets through monetisation.
  2. The aim is to unlock the value of government investments and public money in infrastructure and take this country forward.
  3. The top five sectors by estimated value capture about 83% of the aggregate pipeline value. These top 5 sectors include roads with 27%, followed by railways with 25%, power with 15%, oil & gas pipelines with 8% and telecom with 6%.
  4. In the Union Budget 2021-22 the government had identified monetising operating public infrastructure assets as one of the key pillars for enhanced and sustainable infrastructure financing in the country. The key principle was economic growth through private sector participation.