Govt’s infrastructure asset monetisation plan to raise Rs 6 lakh cr
ECONOMY & POLICY

Govt’s infrastructure asset monetisation plan to raise Rs 6 lakh cr

Minister of Finance Nirmala Sitharaman announced the four-year infrastructure asset monetisation strategy to collect Rs 6 lakh crore under the National Monetisation Pipeline (NMP).

Sitharaman first revealed the monetisation plan in her annual budget speech in February. It would work as a medium-term road map for the asset sale action of the government.

The NMP includes a four-year pipeline from 2022-2025 of the brownfield infrastructure assets of the central government.

The leading three factors classified for asset monetisation comprises coal mining, airports, and railways. Under the scheme, 160 coal mining projects, 25 airports, and 15 railway stadiums would be set up for asset monetisation.

Apart from this, assets like power transmission lines, roads, and gas pipelines would also be a part of the plan.

The government would hold the ownership of assets, and there would be compulsory hand back after a specific time.

The plan would help recognise brownfield assets that require better monetisation, and just the under-utilised assets would be monetised.

Amitabh Kant, CEO NITI Ayog, told the media that the plan is about monetising the current asset base and utilising their profits for new infrastructure production, recycling the upcoming assets, and creating several effects on growth and improvement in credit flow.

The CEO revealed that in the monetisation of core infrastructure assets, the ownership would remain with the government, and the private sector would have to give back the asset to the central government.

The road sector holds around 26,700 km assets, which would be monetised, worth Rs 1.60 lakh crore. The road sector has currently monetised 1,400 km highway projects worth Rs 1,700 crore.

Moreover, the power transmission sector monetised five assets through PowerGrid InvIt by raising Rs 7,700 crore. The centre is searching to monetise Rs 28,608 ckt km of transmission line worth Rs 45,200 crore, which would be under PowerGrid.

The government is also seeing power generation in the solar and hydel sector via NTPC, NHPC, NLC, which would be worth Rs 39,832 crore.

Image Source


Also read: Nirmala Sitharaman launches National Monetisation Pipeline

Also read: Government prepares one stop portal for asset monetisation

Minister of Finance Nirmala Sitharaman announced the four-year infrastructure asset monetisation strategy to collect Rs 6 lakh crore under the National Monetisation Pipeline (NMP). Sitharaman first revealed the monetisation plan in her annual budget speech in February. It would work as a medium-term road map for the asset sale action of the government. The NMP includes a four-year pipeline from 2022-2025 of the brownfield infrastructure assets of the central government. The leading three factors classified for asset monetisation comprises coal mining, airports, and railways. Under the scheme, 160 coal mining projects, 25 airports, and 15 railway stadiums would be set up for asset monetisation. Apart from this, assets like power transmission lines, roads, and gas pipelines would also be a part of the plan. The government would hold the ownership of assets, and there would be compulsory hand back after a specific time. The plan would help recognise brownfield assets that require better monetisation, and just the under-utilised assets would be monetised. Amitabh Kant, CEO NITI Ayog, told the media that the plan is about monetising the current asset base and utilising their profits for new infrastructure production, recycling the upcoming assets, and creating several effects on growth and improvement in credit flow. The CEO revealed that in the monetisation of core infrastructure assets, the ownership would remain with the government, and the private sector would have to give back the asset to the central government. The road sector holds around 26,700 km assets, which would be monetised, worth Rs 1.60 lakh crore. The road sector has currently monetised 1,400 km highway projects worth Rs 1,700 crore. Moreover, the power transmission sector monetised five assets through PowerGrid InvIt by raising Rs 7,700 crore. The centre is searching to monetise Rs 28,608 ckt km of transmission line worth Rs 45,200 crore, which would be under PowerGrid. The government is also seeing power generation in the solar and hydel sector via NTPC, NHPC, NLC, which would be worth Rs 39,832 crore. Image Source Also read: Nirmala Sitharaman launches National Monetisation Pipeline Also read: Government prepares one stop portal for asset monetisation

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