Discussion on National Monetisation Pipeline

Spotlight 23 (Aug): Discussion on National Monetisation Pipeline

https://www.youtube.com/watch?v=hg5a3QRVwL0

ECONOMY/ GOVERNANCE

• GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
• GS-3: Investment Model; Indian Economy & its challenges

Discussion on National Monetisation Pipeline

Context: Union Minister for Finance and Corporate Affairs Nirmala Sitharaman launched the National Monetization Pipeline (NMP).

About National Monetization Pipeline (NMP):

• NMP comprises a four-year pipeline of the Central Government’s brownfield infrastructure assets with an aim to monetize core assets under the Central Government to the tune of Rs 6.0 lakh crores over a period of four years, from FY22 to FY25.
• Besides providing visibility to investors, NMP will also serve as a medium-term roadmap for the Asset Monetisation initiative of the Government.
• NMP does not include monetization plans through disinvestment or through programmes linked to non-core assets, as presently it only includes assets of central government line ministries and CPSEs in infrastructure sectors.
• Coordination and collation of asset pipelines from states are ongoing. It is expected to be included in due course.

Aims and objectives:

• The aim of the NMP scheme is to develop a system and a transparent mechanism towards asset monetization and monitor the performance of the initiative as well as help investors plan future activities.
• The objectives include providing access to quality and affordable infrastructure for citizens by luring private sector investment for better infrastructure creation.
• It will Create employment opportunities and fuel economic growth along with integration of the rural and semi-urban areas for better public welfare.

How the assets will be monetized?

• An empowered committee has been constituted to implement and monitor the Asset Monetization programme. 
• The Core Group of Secretaries on Asset Monetization (CGAM) will be headed by the Cabinet Secretary.
• The sectors in which assets are being identified to monetize include roads, ports, airports, railways, power generation and transmission, telecom, warehousing, gas & product pipeline, mining, stadium, hospitality and housing.

Significance of the National Monetization Pipeline (NMP):

• Identified as the key means for sustainable infrastructure financing, the scheme prepares a monetization pipeline of potential brownfield infrastructure assets including roads, railways, aviation, power, oil and gas, and warehousing. 
• Brownfield stands for projects which aim at improving or operation infrastructures that are already build and are leased or purchased by an entity 
• The government has planned a 6-trillion rupees pipeline of assets that can be monetised, which will include a range of assets put on the block for private sector participation.
• Policy think tank NITI Aayog has finalised the NMP of potential brownfield infrastructure assets that has been created for a four-year period from the financial year 2021-22 to 2024-25.

Can you answer this question now?

Discuss the role of National Monetization Pipeline in monetizing the core assets under the Central Government to the tune of Rs 6.0 lakh crores over a period of four years.