FM Nirmala Sitharaman unveils national asset monetization plan of worth 6 lakh crores

NEW DELHI: On Monday, a four- year national assest monetization plan was unveiled by Union Finance Minister Nirmala Sitharaman which is made with help of NITI Aayog. The plan includes large chunk of brownfield assets across the central ministries and public sector across public sector entities such as railway, roads and power.

Sector wise Monetisation of government assets as announced in NMP over FY 22-25(Source-NITI Aayog press release)

As per the plan, The FM said that the Assets would not be sold but instead the asset will provided on lease to the the private sector so that the assets which are unused Or not fully Capitalised by the state government can be monetized to bring in more capital for the central government which will provide steady flow of revenue to the central government and also generate employment.FM Sitharaman also promised that incentives would be provided to the state government for undertaking disinvestment and monetization of the assets. The assets will be taken back by the government at end of transaction life.

The listed assets in NMP which would be monetized are 6 GW of hydroelectric and solar power assets, 28,608 CKT km worth of power transmission lines, 2.86 lakh of km fibre assets and 14,917 towers in the telecom sector, 8,154 km of natural gas pipelines and 3,930 km of petroleum product pipelines. 26,700 km of roads, railway stations, train operations and tracks.

The government also said that 25 airport and the stake of the Central government in existing airports,15 railway stations, 2 national stadiums , 2 regional centres,160 coal mining projects, 31 projects in nine major ports, 210 lakh MT of warehousing assets are among those which would be monetized.

For encouraging monetization, government has already set aside 5000 crores for giving incentives to the states. The government has said that if the state government monetize any state assets it will receive 33% of the revenue generated from the monetization.

Sitharaman said that national monetization pipeline will create employment opportunities, thereby enabling high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare. The plan of bringing such monetization programmes was already revealed by the FM in the 2021-22 budget speech with our PM Modi initially announced and sanctioned ₹102 lakh crore national infrastructure pipeline back in 2019.

For the complete guidelines and roadmap of the NMP refer: https://www.niti.gov.in/national-monetisation-pipeline

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