Union Finance Minister Nirmala Sitharaman will launch the National Monetisation Pipeline (NMP) in New Delhi on August 23. Initiating this, the government is striving to map out its infrastructure assets to be sold over the upcoming four years. Besides granting visibility to investors, the NMP will also serve as a medium-term roadmap for the asset monetisation initiative of the union government, said an official press release.
The NMP consists of a four-year route of the government brownfield infrastructure assets. In the Union Budget 2021-22, the government laid expressed the importance of asset monetisation to generate innovative and alternative financing for infrastructure.
Earlier this month, the Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said that the government is finalising Rs 6 lakh crore worth of infrastructure assets, including national highways and power grid pipelines, which would be monetised.
“A national monetisation plan of about Rs 6 trillion is in the offing which will have a range of assets from pipelines to power grid pipelines to national highways, ToT (toll-operate-transfer) and so on,” Pandey had said.
In her Budget speech, the FM had averred, “Monetising operating public infrastructure assets is a very important financing option for new infrastructure construction. A ‘National Monetisation Pipeline’ of potential brownfield infrastructure assets will be launched. An Asset Monetisation dashboard will also be created for tracking the progress and to provide visibility to investors.”
To monetize the assets effectively, the Ministry of Road Transport and Highways has ascertained the target of raising Rs 30,000 crore from the next three years. NITI Aayog’s Vice Chairman Dr Rajiv Kumar and CEO Amitabh Kant will also visit the launch.