NMP: Here is how govt is planning to make Rs 6 lakh crore from its underutilised assets

NMP: Here is how govt is planning to make Rs 6 lakh crore from its underutilised assets

[Music] finance minister nirmala sitharaman monday launched the national monetization pipeline which is expected to fetch the government an estimated revenue of rupees 6 lakh crore over the next four financial years till financial year 2025 the national monetization pipeline is expected to bring in investment for brownfield projects now brownfield units are those which have already been built up these are assets that belong to the government which need more investment so they can be better utilized and generate more revenue for the government in this way the government is bringing in private sector investment and as well as trying to generate revenue for itself at a time when india’s economy needs serious investments finance minister nirmala sitharaman has clarified although that none of these units none of these assets will include land there’s no land here this entire pipeline national monetization pipeline is talking about brownfield assets where investment has already been made where there is a completed asset which is either languishing or which is remaining not fully monetized or it is remaining under utilized so by bringing in the private participation into this you’re going to be able to monetize it better and with whatever resource that you’re having uh obtained through the monetization you’re able to put in further investment into infrastructure building so first of all for those who have this question in your mind which means are we selling away the lands no this infrastructure national monetization pipeline is talking about brownfield assets which need to be better monetized further the assets will not change hands and the ownership will remain with the government now these assets will be put up for investment for the private sector for global investors who would be interested in coming to india and investing in already built up uh units now these units are all central government owned units the states have not been involved as of now but these investments these units will be handed back to the government after a defined period of about say 25 to 30 years finance minister nirmala sitharaman has assured that all contractual partnerships that the government will enter into with the private players will be executed with full key performance indicators and performance standards and the second most important point here is that the contractual partnerships which we will enter in executing this monetization pipeline will be with full kpis and performance standards ensured so the kpis and performance standards will have to be complied with for getting through the monetization pipeline [Music] the national monetization pipeline has a variety of sectors and asset classes the sectors includes roads ports airports railways warehousing uh gas and oil pipelines power generation and transmission mining telecom stadiums hospitality as well as housing the the entire aim of the government is to ensure that all the underutilized assets in these sectors get utilized and the government gets revenue out of it in the first year which is fy 2122 the government is expecting 88 000 crores worth of revenue [Music] the government has put a lot of emphasis on the national monetization plan with the early targets assigned to ministries and departments now the government will be reviewing this monthly through an empowered committee and has also launched a real-time monitoring through a dashboard however the finance minister will be holding quarterly reviews of the implementation plan [Music] the government has identified a range of public private partnership models for monetization these include operate maintain transfer toll operate transfer operations maintenance and development and rehabilitate operate maintain transfer so these are multiple models that they have omt and tot have already been deployed in the road sector and omd has been deployed in the airport sector the national highways authority of india has already raised 17 000 crores from the tot model the government has kept the option of infrastructure investment trusts and real estate investment trusts open for the investors so that these vehicles can pool capital from various investor classes which are typically market-based the government has been enthused by the use of these instruments in fact the invite of power grid has already been launched and the first public sector invite and has garnered over 7000 crores the government’s aim is that the enhanced capital expenditure spending and world-class infrastructure building will have a multiplier effect on growth and employment as well as revival of credit flow the value from the consideration and the private investment which will come into maintaining it optimally utilizing it putting it for a larger cost all this will generate greater value and it will unlock resources for the economy which is what we want the economy needs more resources the economy wants that kind of a liquidity that kind of a value unlocking with which we can move forward
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NMP: Here is how govt is planning to make Rs 6 lakh crore from its underutilised assets

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