Nirmala Sitharaman, India’s Finance Minister, launched the National Monetisation Pipeline (NMP) on Monday. Between FY22 and FY25, a four-year pipeline of the Centre’s Brownfield infrastructure assets is outlined in the NMP.
NMP is also intended to serve as a medium-term roadmap for identifying potential monetization-ready projects across a variety of infrastructure sectors, in addition to providing visibility to investors
The budget, Sitharaman said, places a high priority on public investment in infrastructure. There is no land involved in the NMP, only Brownfield assets, accordingly.
It was revealed by the finance minister that despite the second wave, public sector enterprises (PSEs) are ramping up CAPEX. She said that she will continue to monitor NMP, according to Sitharaman, will focus on brownfield assets where investments have already been made, but where the assets are either unused, underutilised or not fully monetised.
In addition to providing visibility to investors, Niti Aayog’s National Monetisation Plan will serve as a medium-term roadmap for the government’s asset monetisation initiative, according to A new book, titled National Monetisation Pipeline, will also be to raise innovative and alternative financing for infrastructure, asset monetisation was heavily promoted in the Union Budget 2021-22.
Secretary Tuhin Kanta Pandey of the Department of Investment and Public Asset Management (Dip am) recently said that the government was preparing an approximately 6-lakh-crore national monetization plan, which will include pipelines, power transmission lines, and long stretches of national highways.
With donor support, “we’ll be able to exploit the assets better, and with whatever resources we get from monetization, we’ll be able to put in for future infrastructure investment,” the minister said.
In addition to the AAI’s 25 airports, including those in Chennai Bhopal Varanasi and Vadodara; 40 railway stations; 15 stadiums; and an unknown number of railway communities, private investors have been identified for these projects.
It allows private enterprises to invest in projects for a fixed return utilising the InvIT route. They can also use the assets for a set length of time before returning them to the government agency. As an alternative, some assets, such as warehouses and stadiums, can be provided on a long-term lease.
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