National Monetisation Pipeline – All you need to know about

NMP (National Monetisation Pipeline) will cover a wide range of sectors, from road and railway assets to power transmission lines and gas pipelines.

National Monetisation Pipeline

According to Nirmala Sitharaman, finance minister, the government will only monetise under-utilised assets and ownership will remain with the centre. “National Monetisation Pipeline concerns brownfield assets, where investments are already being made, which are either unused or not monetised fully. Private investment will be brought in to monetise the brownfield assets, Nirmala Sitharaman explained.

  • After a predetermined amount of time, private participants must turn over the assets to the government. The money obtained through monetization will be used to build infrastructure.
  • “This will unlock resources for the economy and create greater value,” the finance minister said
  • NITI Aayog CEO Amitabh Kant highlighted that infrastructure assets worth * 6 lakh crore will be monetised over the next four years. “Projects have been identified to monetise the assets.”
  • According to Mr Kant, the government will monetise assets worth Rs 1.6 lakh crore from the roads sector, Rs 1.5 lakh crore from the railway sector, and Rs 79,000 crore from the power sector. As well, the center plans to monetise Rs 20,800 crore from airports, Rs 13,300 crore from ports, Rs 35,080 crore from telecommunications, Rs 11,500 crore from stadiums, and Rs 45,200 crore from power generation.
  • Assets will be mostly monetised through invIT or public-private partnerships.
  • Vice Chairman Rajiv Kumar said the government is committed to involving the private sector and private capital in infrastructure development.
  • Infrastructure is a multiplier effect, and a monetisation pipeline could pave the way for private capital to be mobilized for the development of infrastructure, Mr. Kumar added.
  • The ministries of roads, transport & highways, railways, power, pipeline & natural gas, civil aviation, shipping ports & waterways, telecommunications, food & public distribution, mining, coal, housing and urban affairs will be a part of the National Monetisation Pipeline, the Finance Ministry elaborated.
  • During Union Budget 2021, Nirmala Sitharaman Sitharaman had mentioned a National Monetisation Pipeline, saying the government had been looking at alternative methods of raising finances.
  • Monetization of assets involves unlocking the value of unutilized and underutilized public assets, according to the Department of Investment and Public Asset Management website. 

Also read: India’s FinTech Revolution – Rising popularity of fintech certifications.

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