Finance Minister Nirmala Sitharaman today launched the asset monetisation pipeline of union ministries and public sector entities: 'National Monetisation Pipeline' (NMP) which has been developed by the NITI Aayog, based on the mandate for 'Asset Monetisation' under Union Budget 2021-22. NMP estimates aggregate monetisation potential of Rs. 6 lakh crore through core assets of the union government, over 4 years - from FY 2022 to FY 2025.
The NMP aims for infrastructural development of Roads, Transport and Highways, Railways, Power, Pipeline and Natural Gas, Civil Aviation, Shipping Ports and Waterways, Telecommunications, Food and Public Distribution, Mining, Coal and Housing sectors. The top 5 sectors (by estimated value) capture around 83% of the aggregate pipeline value. These top 5 sectors include: Roads (27%) followed by Railways (25%), Power (15%), oil & gas pipelines (8%) and Telecom (6%).
Announcing the NMP, FM stated that the pipeline "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."
Amitabh Kant, CEO, NITI Aayog added, "Asset Monetisation needs to be viewed not just as a funding mechanism, but as an overall paradigm shift in infrastructure operations, augmentation and maintenance considering private sector's resource efficiencies and its ability to dynamically adapt to the evolving global and economic reality." The new investment model will enable financial and strategic investors along with the common people to participate in this asset class. NITI Aayog thinks this pipeline will make 'India's infrastructure truly world-class'.
Anuj Puri, Chairman - ANAROCK Property Consultants commented, "The Government plans to monetise brownfield de-risked assets having stable revenue streams, which are lucrative to the private investors. The Government plans to monetize all assets through direct contractual instruments such as public-private partnership (PPP) concessions as well as capital market instruments such as Infrastructure Investment Trusts (InvIT). InvITs will help the retail investors to participate and gain from the India growth story. All-in-all, NMP looks to be a good step towards the Government's vision of reducing its focus from the non-core businesses and improve its fiscal position."