National Monetary Pipeline: Nirmala Sitharaman Launches Rs 6-lakh-crore National Monetary Pipeline. Here’s the fine print

Finance Minister Nirmala Sitharaman today tabled a 6 lakh crore Rs plan to monetize existing government assets and use the proceeds to strengthen infrastructure.

National Monetization Pipeline: Here’s how the government plans to make Rs 6 lakh crore from its underutilized assets

Finance Minister Nirmala Sitharaman launched the National Monetization Pipeline (NMP) on Monday. NMP is expected to bring in an estimated Rs 6 lakh crore to the government over a four year period to FY25. ETs Gulveen Aulakh gives you the fine print on how the government wants to get the most of their untapped assets through private involvement. Regard

This pipeline will only include government-owned fallow land, Sitharaman said, and not government estates.


“The contractual partnerships that the government will enter into in implementing the monetization pipeline will be with full KPIs and performance indicators. This will ultimately help free up resources for the economy, ”the FM said.

“The ultimate goal of asset monetization is to have a multiplier effect on growth and employment and to revitalize the flow of credit.”

– NITI Aayog CEO Amitabh Kant

Amitabh Kant, chief executive of NITI Aayog, said the plan, which was drawn up after extensive consultations with related parties, “would unlock the value of government investment and public money in infrastructure.”

As part of the newly announced national monetization pipeline

– The pipeline of government assets covers approximately 14% of the centre’s spending

– NMP covers over 20 asset classes and 12 line ministries

“The strategic objective of the Asset Monetization program is to unlock the value of investing in public sector assets by unlocking the capital and efficiency of the private sector that can then be used to expand / re-establish infrastructure.”

– NITI Aayog VC Rajiv Kumar

1. Ownership of the fallow land that is to remain with the state

– There will be a mandatory return of assets after the allotted time.

– All assets are exposed to risk.

“This will free up resources for business, which is what we want,” said the FM.

2. Center to incentivize states to monetize their assets

– Incentives as interest-free loans with a term of 50 years.

– Up to Rs 5,000 crore already budgeted for the current year.

– When states sell a power supply unit, they receive 100% financial support.

– If they monetize the asset, they will get 33% of that amount.

– If states list a public company on the stock exchange, the government will give them 50% of that amount.

3. Road, rail and energy as priority sectors

– Rs 1.6 lakh crore worth national roads from NHAI.

– Transmission lines valued at Rs 67,000 crore from Power Grid.

– Water, solar and wind projects valued at Rs 32,000 crore from NHPC, NTPC and Neyveli Lignite.

– 400 stations, about 150 trains, tracks and woodshed valued at Rs 1.5 lakh crore.


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