inance Minister Nirmala Sitharaman said that National Monetization Pipeline talks about brownfield assets where investment is already being made, where there are assets either languishing or not fully monetized or under-utilized.
What is National Monetization Pipeline?
- The National Monetisation Pipeline comprises a four-year pipeline of the Central Government’s brownfield infrastructure assets.
- It will serve as a medium-term roadmap for the Asset Monetisation initiative of Centre, besides providing visibility to the investors.
- The National Monetisation Pipeline (NMP) estimates aggregate monetization potential of Rs 6 lakh crores through core assets of the Central Govt, over a 4-year period, from FY 2022 to FY 2025.”
- 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.
What is Asset Monetization?
- Asset Monetization involves the creation of new sources of revenue by unlocking of the value of hitherto unutilized or underutilized public assets.
- Internationally, it is recognized that public assets are a significant resource for all economies.
- Many public sector assets are sub-optimally utilized and could be appropriately monetized to create greater financial leverage and value for the companies and of the equity that the government has invested in them.
- This helps in the accurate estimation of public assets which would help in the better financial management of government/public resources over time.