New Delhi: Finance minister Nirmala Sitharaman on August 23 announced Centre’s four-year infrastructure asset monetisation plan under the National Motenisation Pipeline (NMP) that is supposed to raise Rs 6 lakh crore ($81 billion) by selling out government’s infrastructure assets. The planned sales are in line with Prime Minister Narendra Modi’s strategic divestment policy, under which the state will retain presence in only a few identified sectors with the rest privatized.
The monetisation plan was first announced by Sitharaman in her annual budget speech in February. It will serve as a medium-term road map for the government’s asset sale initiative.
Here are key points from Sitharaman’s press conference:
-The National Monetisation Pipeline comprises a four-year pipeline from 2022-2025 of the central government’s brownfield infrastructure assets: Niti Aayog CEO Amitabh Kant
–Asset monetisation will unlock resources, lead to value unlocking: FM on asset monetisation plan.
–Land will not be monetised under National Monetisation Plan only brownfield assets to be monetised: FM.
-It is important that India recognizes that the time has come for making the most out of our assets: FM.
-Budget identified infrastructure as the key focus for public expenditure: FM
–Nirmala Sitharaman says ownership of the assets will remain with the government, there will be a mandatory hand back of the asset after the due time. Government is not selling its assets for good.
-Finance Minister Nirmala Sitharaman launches National Monetisation pipeline (NMP).
–Infra assets worth ₹6 lakh cr across rail, road, power sectors to be monetised over 4 years, says Kant.
-Kant says govt to monetise gas pipelines, roads, railway assets, warehousing assets among others.
–Niti Aayog CEO Amitabh Kant says monetisation of state-run assets program covers assets worth ₹6 lakh crore rupees
-“Monetisation of state-run assets program covers assets worth 6 trillion rupees”: Kant.
-“The #NMP is set up to not only provide a much needed positive trigger for the economy but is also designed to lay the necessary roadmaps for asset monetisation of the Central Government’s brownfield infrastructure assets,” tweeted Rajiv Kumar, vice-chairman of NITI Aayog.
-Finance Minister Nirmala Sitharaman to address a press conference shortly.
-Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey had earlier this month said that the government is finalising ₹6 lakh crore worth infrastructure assets, including national highways and power grid pipelines, which would be monetised.
-The Union Budget 2021-22, laid a lot of emphasis on asset monetisation as a means to raise innovative and alternative financing for infrastructure.
-In her Budget speech, Sitharaman had said that monetising operating public infrastructure assets was a very important financing option for new infrastructure construction.
-The government views asset monetisation as a strategy for the augmentation and maintenance of infrastructure, and not just a funding mechanism.
-The NMP book will be released in the presence of Niti Aayog Vice Chairman Rajiv Kumar, Niti Aayog CEO Amitabh Kant, and Secretaries of relevant ministries whose assets constitute the monetisation pipeline.