New Delhi: The central government has unveiled a multi-crore National Monetisation Pipeline (NMP). On Monday, Union Finance Minister Nirmala Sitharaman had announced details of the NMP. Through the NMP, the central government would look to unlock value in infrastructure assets across sectors ranging from power to roadways and Indian railways, FM Sitharaman said, as per PTI report.
National Monetisation Pipeline NMP Meaning, Explained
- National Monetisation Pipeline is worth Rs 6 lakh crore.
- FM Sitharaman has said that the asset monetisation does not involve selling of land and it is about monetising brownfield assets. Projects have been identified across sectors, with roads, railways and power being the top segments.
- “NMP estimates aggregate monetisation potential of Rs 6 lakh crores through core assets of central government over the four-year period from FY 2022 to FY 2025,” she said, adding “Ownership of assets will remain with the government and there will be a mandatory hand-back.”
- Budget 2021 had identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing, PTI reported.
- Towards this, the Budget provided for preparation of a “National Monetisation Pipeline” of potential brownfield infrastructure assets. NITI Aayog in consultation with infra line ministries has prepared the report on NMP, according to PTI report.
- The aggregate asset pipeline under NMP over the four-year period is indicatively valued at Rs 6 lakh crore. The estimated value corresponds to 14 per cent of the proposed outlay for Centre under the National Infrastructure Pipeline (Rs 43 lakh crore), as per PTI report.
Get real time update about this post directly on your device, subscribe now.