Ministry Of Finance To Reveal Monetisation Pipeline

Finance Minister Nirmala Sitharaman will unveil the National Monetisation Pipeline (NMP) on Monday as part of the government's effort to monetise assets. The strategy intends to monetize existing infrastructure assets worth Rs 6 lakh crore spanning sectors including roads, railroads, aviation, electricity, petroleum & gas, and warehousing, with a variety of assets placed up for sale to the private sector.

The constitution says Niti Aayog announced the proposal on Sunday, saying that the NMP is a four-year pipeline of the central government's current infrastructure assets. She stated, "In addition to giving clarity to investors, it will also act as a moderate road plan for asset monetisation in the future."

The Union Budget 2021-22 placed a strong focus on asset monetisation as a way of raising creative and alternative infrastructure funding. The Finance Minister stated in her Budget address that monetising operating public infrastructure assets were a critical financing option for future infrastructure projects.

Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management, announced earlier this month that the government is negotiating Rs 6-lakh crore in infrastructure assets to be monetised.

The government sees asset monetisation as a plan for infrastructure enhancement and maintenance, not merely a financial instrument.