The finance minister made it clear that the plan is only about fallow land projects, not land, and also promised to encourage states to divest and monetize assets.
“Ownership of assets will remain with the government and there will be a mandatory return, which means they will have to return after a certain amount of time. Don’t let confusion arise that this government is selling. No. These wastelands will continue to be owned by the government, “said Sitharaman as he unveiled the roadmap, which, along with the privatization of state-owned companies, will be a critical element in raising resources to promote growth and job creation in the context of the pandemic.
In the 2021-22 budget speech, Sitharaman announced the launch of an asset monetization program as a funding mechanism for higher infrastructure spending.
The government has already announced a national infrastructure pipeline of Rs 100-lakh-crore. The national asset monetization pipeline was developed by Niti Aayog in consultation with the infrastructure ministries.
Assets include roads and highways, pipelines, power lines, telecommunication towers, station refurbishment, private trains, tracks, freight sheds, special freight corridor, 15 railway stadiums, 25 airports, 31 projects in nine major ports, 160 coal mining projects, 761 mining blocks, two national stadiums, new development of Colonies and Hospitality Facilities According to Amitabh Kant, CEO of Niti Aayog, there are over 20 asset classes in 12 ministries identified for the pipeline and these are brownfield risk assets that are offered for private investment.
Sitharaman said the center will incentivize states to divest PSUs and monetize assets and outlined a three-point plan.
States that raise money by divesting state PSUs or giving up control receive an equal amount from the center.