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Centre plans to raise Rs 6 lakh crore through National Monetisation Pipeline


Union finance minister Nirmala Sitharaman on Monday unveiled the Rs 6 lakh crore National Monetisation Pipeline (NMP) that aims to monetise brownfield assets by bringing private participation. Sitharaman also clarified that only under-utilised assets will be monetised while the ownership will remain with the government.

NMP has been developed by the Niti Aayog in consultation with several ministries and the government wants to raise money through monetising the value of the core assets owned by it over four years starting from 2022 to 2025.

Infrastructure building

According to the finance ministry, the money garnered through the monetisation exercise will be utilised for infrastructure development. The private participants will have to hand over the assets to the government after a fixed period. The minister said that the process will help in unlocking resources for the economy.

The Union Budget 2021-22 identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing. Towards this, the Budget provided for the preparation of a ‘National Monetisation Pipeline (NMP)’ of potential brownfield infrastructure assets. NMP aims to provide a medium-term roadmap of the programme for public asset owners; along with visibility on potential assets to private sector.

What Sitharaman said

While launching the NMP, Nirmala Sitharaman said, “Asset monetisation, based on the philosophy of creation through monetisation, is aimed at tapping private sector investment for new infrastructure creation. This is necessary for creating employment opportunities, thereby enabling high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare.”

The minister further enumerated the reforms and initiatives undertaken by the Centre towards accelerated infrastructure development and for incentivising private sector investments. This included the recent ‘Scheme of Financial Assistance to States for Capital Expenditure’, which incentivises state governments to recycle state government-owned assets for fast-tracking greenfield infrastructure.


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