National Monetisation Pipeline: India unveils $81 billion plan; ownership of assets will remain with govt

WION Web Team
NEW DELHIUpdated: Aug 23, 2021, 11:19 PM IST

India's finance minister Nirmala Sitharaman (file photo) Photograph:(ANI)

Story highlights

India plans to monetise $81 billion worth of state assets over the next four years under a program announced earlier in the 2021/2022 budget to boost infrastructure spending and spur economic growth in Asia's third biggest economy.

Indian Finance Minister Nirmala Sitharaman unveiled the 'National Monetisation Pipeline' on Monday, with the goal of monetizing assets worth $81 billion during the fiscal years 2022-25.

The plan outlines the government's four-year strategy for monetizing brownfield infrastructure assets ranging from roads and railroads to electricity transmission and production, as well as mining.

"The ownership of assets remains with the government. There will be a mandatory hand back. They (private sector partners) will have to give it back after a certain time," Sitharaman said.

"By bringing in private participation, we are going to monetize it (assets) better and with whatever resource that you obtained by monetisation, you are able to put in for further investment into infrastructure building," she added.

Asset monetisation will unlock resources and lead to value unlocking, she said.

Union Budget 2021-22 had identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing.

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.

The end objective of this initiative is to enable "infrastructure creation through monetisation" wherein the public and private sector collaborate, each excelling in their core areas of competence, so as to deliver socio-economic growth and quality of life to the country's citizens, she added.

(With inputs from agencies)