The Centre's National Monetisation Pipeline (NMP) worth Rs 6 lakh crore focuses on five major sectors to privatise viable assets and attract investor attention. On August 23, Finance Minister Nirmala Sitharaman announced the plan that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways. She added that asset monetisation does not involve selling land and it is about monetising brownfield assets.
The top 5 sectors under the National Monetisation Pipeline capture 83 percent. The power sector that is part of it so is the oil and gas sector. The power sector contributes 15 percent and oil and gas contribute 8 percent under NMP.
The government will offer 28,608 circuit kms of transmission lines of Power Grid over a four-year period with an indicative value of Rs 45,200 crore. The model for monetisation will be through invIT and the government expects that investors will come in for consistent and stable cash flows.
Now, the power generation assets from hydel to solar and wind from NHPC, NTPC, NLC will be part of the exercise. The government expects that strong investment in renewable energy projects, as these are environmental, social and governance (ESG) compliant assets, will bring in more investors.
Now in the oil and gas sector, 8,154 kms of the natural gas pipeline of GAIL has been identified for monetisation, indicative value over 4 years is over Rs 24,000 crore. With regulated pricing regime in place for natural gas and policy measures that are going to open up the gas market will be attractive for investors and invIT is the model which will be used for monetisation for this.
Apart from this, in the oil and gas space, pipelines for products like LPG, hydrogen generation assets and ESG assets of IOC and HPCL will be part of monetisation too.
The government believes that higher utilisation levels and counter-party risk will provide stable cash flows and attract investors.
Lastly, over Rs 28,000 crore worth 160 coal mining projects will be part of monetisation pipeline to reduce import dependence on cooking coal imports and bring in private participation to boost production.
These include 17 projects on mine developer and operator (MDO) model, establishment of three washeries, one coal gasification plant, 35 identified first-mile connectivity projects for building coal silos/ mechanised loading, operationalisation of four discontinued/ abandoned projects, and commercial auction of mines.
With inputs from PTI