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Comprehensive News & Analysis

10-09-2021 | 17:07 PM

National Monetisation Pipeline (NMP)


• The Union Government recently launched the National Monetisation Pipeline (NMP) in an effort to list out the government’s infrastructure assets to be sold over the next four-years. 

Key Highlights 

• The programme has the objective to unlock the value of investments in brownfield public sector assets by tapping institutional and long-term capital, which can thereafter be leveraged for public investments. 

• The four-year National Monetisation Pipeline (NMP) will unlock value in brownfield projects by engaging the private sector, transferring to them the rights but not the ownership in projects. 

• The components of project are roads, railways and power sector assets which will comprise over 66 per cent of the total estimated value of the assets to be monetised, with the balance coming from sectors including telecom, mining, aviation, ports, natural gas and petroleum product pipelines, warehouses and stadiums. 

• Currently, only assets of central government line ministries and CPSEs in infrastructure sectors have been included. Monetization through disinvestment and monetization of non-core assets have not been included in the NMP. 

Significance

• Asset Monetisation needs to be viewed not just as a funding mechanism, but as an overall paradigm shift in infrastructure operations, augmentation and maintenance considering the private sector’s resource efficiencies and its ability to dynamically adapt to the evolving global and economic reality.

• Considering that infrastructure creation is inextricably linked to monetisation, the period for NMP is co-terminus with the balance period under National Infrastructure Pipeline (NIP) i.e for FY 2022-2025. 

• NMP is indicatively valued at Rs 6.0 lakh crore for 4 years.

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