Asset monetisation plan launched, ownership to remain with Govt

The Centre has introduced the National Monetisation Pipeline (NMP) for monetising infrastructure assets across sectors from rail to road to power. While unveiling the Rs 6 lakh crore National Monetisation Pipeline (NMP) in New Delhi on Monday, finance minister Nirmala Sitharaman said that under-utilised assets will be monetised and the assets ownership will remain with government. The government will not sell off any assets, but only utilise them in a better manner, the finance minister said and emphasized that the entire exercise "will generate greater value and unlock resources for economy."  By bringing in private participation, we are going to monetize it (assets) better and with whatever resource that you obtained by monetization, you are able to put in for further investment into infrastructure building," Sitharaman said at the plan launch event.

The book on National Monetisation Pipeline was released by the finance minister in the presence of Vice Chairman of NITI Aayog, Dr Rajiv Kumar, CEO, Amitabh Kant, and secretaries of ministries whose assets would come under the monetisation pipeline. The National Monetization Pipeline will only monetise brownfield assets and this will be done by bringing in private participation, the finance minister said. The private participants will have to hand over the assets to the government after a certain period of time. The money obtained through the monetization exercise will be channelised into infrastructure building, the minister added.

Asset monetisation is the process of creating new sources of revenues by unlocking the value of unutilised and underutilised public assets, according to the Department of Investment and Public Asset Management . Infra assets worth Rs 6 lakh crore will be monetised across the rail, road and power sectors over 4 years, the NITI Aayog CEO Amitabh Kant said. Under the scheme, 15 railway stadiums, 25 airports, 160 coal mining projects will be put up for asset monetisation: Kant said.This year's budget has laid a lot of emphasis on asset monetisation as a means to raise innovative and alternative financing for infrastructure.