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finance | IST

Govt's Rs 6 lakh crore asset monetisation plan: from roads to railways, details here

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National Monetisation Pipeline (NMP) estimates an aggregate monetisation potential of Rs 6 lakh crores through core assets of the Central government over the four-year period from FY 2022 to FY 2025.

Finance Minister Nirmala Sitharaman on Monday announced a Rs 6 lakh crore National Monetisation Pipeline (NMP) that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways. She also said the asset monetisation does not involve the selling of land and it is about monetising brownfield assets.
The Union Budget 2021-22 had identified the monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing.
Here are the key highlights:
  • NMP estimates an aggregate monetisation potential of Rs 6 lakh crores through core assets of the Central government over the four-year period from FY 2022 to FY 2025
  • Ownership of assets will remain with the government.
  • The estimated value corresponds to 14 percent of the proposed outlay for Centre under the National Infrastructure Pipeline (Rs 43 lakh crore)
  • The end objective of this initiative is to enable "infrastructure creation through monetisation" wherein the public and private sector collaborate.
  • The government's FY22 asset monetisation target stands at Rs 88,000 crore, while the annual outlay is Rs 1.5 lakh crore.
  • NMP is a culmination of insights, feedback and experiences consolidated through multi-stakeholder consultations undertaken by NITI Aayog, Ministry of Finance and line ministries.
  • Asset monetisation is ultimately aimed at achieving a multiplier impact on growth and employment and reviving credit flow.
  • Asset monetisation is necessary for creating employment opportunities, thereby enabling high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare.
  • Ministries of Roads, Transport & Highways, Railways, Power, Pipeline & Natural Gas, Civil Aviation, Shipping Ports & Waterways, Telecommunications, Food & Public Distribution, Mining, Coal & Housing & Urban Affairs are included in National Monetisation Pipeline.
  • The government is looking to monetise 25 AAI-managed airports over the next four years, which could bring in investments worth Rs 20,782 crore.
  • The Centre plans to monetise real estate assets worth an estimated Rs 15,000 crore, including several housing colonies in the national capital and eight ITDC hotels, under the NMP.
  • Niti Aayog has valued government telecom assets at Rs 35,100 crore which can be monetised by the financial year 2024.
  • The government has identified 160 coal mining assets worth an estimated at Rs 28,747 crore for monetisation over four years till FY25.
  • Railways will monetise assets, including certain stations, tracks, passenger trains and Konkan Railway, worth over Rs 1.52 lakh crore over four years till FY25.
  • NITI Aayog has valued state-owned power generation assets at Rs 39,832 crore which can be monetised by the financial year 2025.
  • Stay tuned for all the updates. Click here