- GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
- The Finance Minister has launched the asset monetisation pipeline of Central ministries and public sector entities developed by NITI Aayog.
National Monetization Pipeline meaning
- National Monetization Pipeline is about those brownfield assets where investment is already being made, but have assets that are either languishing or not fully monetized or under-utilized.
- These assets will be monetized and the amount received will be used for further infrastructure building.
- Union Budget 2021-22 has identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing.
- Monetization through disinvestment and monetization of non-core assets (such as land, building, and pure play real estate assets) have not been included in the National Monetization Pipeline (NMP).
- The aggregate asset pipeline under NMP over the four-year period, FY 2022-2025, is indicatively valued at Rs 6.0 lakh crore.
- The estimated value corresponds to 14% of the proposed outlay for Centre under NIP (National Infrastructure Pipeline).
- The sectors included are roads, ports, airports, railways, warehousing, gas & product pipeline, power generation and transmission, mining, telecom, stadium, hospitality and housing.
- The top 5 sectors (by estimated value) capture 83% of the aggregate pipeline value.
- These top 5 sectors:
|Oil & Gas pipelines||8%|
Sector-wise break-up of NMP
Objectives of National Monetization Pipeline
- To as a medium-term roadmap for the line ministries and agencies.
- To provide medium-term visibility to investors on infrastructure assets pipeline.
- To also provide a platform for ministries to track asset performance.
- To bring in greater efficiency and transparency in public assets management.
Benefits of National Monetization Pipeline
- It will provide universal access to high-quality and affordable infrastructure to the common citizen of India.
- It is aimed at tapping private sector investment for new infrastructure creation.
- It will create new employment opportunities, which will result in high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare.