Amitabh Kant, CEO of NITI Aayog, on the national monetization pipeline (NMP) to NDTV: “Monetization is not privatization”

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Amitabh Kant, CEO of NITI Aayog, told NDTV that the goal of the monetization plan is to build world-class infrastructure

New Delhi:

The goal of the National Monetization Pipeline (NMP) is to increase capital expenditure (investments) and build world-class infrastructure in the country, Amitabh Kant, chief executive officer (CEO) of NITI Aayog, told NDTV. ” This plan spans four years and aims to have a multiplier effect on growth and jobs by ensuring that the income from monetizing existing assets goes into the creation of new infrastructure and also leads to revitalizing the flow of credit. ‘ ‘said Mr Kant in an exclusive interview with NDTV.

The industry leader’s comments come two days after Treasury Secretary Nirmala Sitharaman unveiled the Rs 6 lakh crore national monetization pipeline, under which the government has assets worth Rs 1.6 lakh crore from the road sector and Rs 1.5 lakh crore from the road sector Monetize the railway sector. and Rs 79,000 crore from the energy sector.

When assets are monetized, ownership of the assets remains with the state. It is a structured contractual partnership with performance indicators or performance standards, explains Kant. As part of the plan, the government will monetize underutilized assets and the fallow land will be monetized by bringing in private investments.

“Assets have been identified in all major central government ministries and public sector companies … there are different monetization models used for this purpose,” said the CEO of the government think tank. There are 20 asset classes involved in the national monetization pipeline.

When the public sector companies like NHAI, NTPC, Power Grid, GAIL monetize their assets, the resources are used by these companies to create more infrastructure in that particular sector, according to Kant.

Regarding the sector-specific outlook of India’s mega-monetization plan, Mr. Kant remains confident that with increased capital spending, railways will become a major growth driver, claiming that “it can give India’s economic growth a huge boost”.

“With the monetization of assets, train stations can create new economic activities … better-run trains can compete with state trains … railway stadiums can be used for sporting activities,” said Kant.

The pipeline of government assets is Rs 6 lakh crore – approximately 14 percent of the centre’s National Infrastructure Pipeline (NIP) spending. Ministries of Railways, Roads, Transportation and Highways, Energy, Civil Aviation, Pipeline and Natural Gas, Shipping Ports and Waterways, Food and Public Distribution, Telecommunications, Mining, Housing and Urban Affairs, Coal will be part of the national monetization pipeline.

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