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What is asset monetisation? Know about Government's plan to raise 6 lakh crore

Tulika Tandon

The Indian Finance Minister Nirmala Sitharaman announced that the Central Government is planning a 4 year infrastructure asset monetisation plan. This would help them to raise 81 billion dollars or 6 lakh crore rupees. The project would be under the National Monetisation Pipeline. The monetisation plan was announced for the first time in the annual budget this year. Take a look at the process and the details of the asset monetisation process. 

Government announces National Monetisation Pipeline for infrastructure development and promoting employment opportunities. #TransformingIndia https://t.co/D5UL7YGQLx pic.twitter.com/wxgSLC9wwJ

— MyGovIndia (@mygovindia) August 24, 2021

National Asset Monetisation: Key Points

Take a look at the key points of this asset monetisation process below. 

  1. The National Monetisation Pipeline is a 4 year pipeline which begins from 2022 and would end in 2025 of the centre's brownfield infrastructure assets. 
  2. The top three sectors that have been identified for asset monetisation are coal mining, airports and railways. 
  3. The assets that would be put up for monetisation would include 15 railway stadiums, 25 airports and 160 coal mining projects. 
  4. This would also include roads, power transmission lines and gas pipelines. 
  5. In the process the ownership of the project would remain with the Government of India and there would be a handback at a particular time.  

What is Asset Monetisation?

Asset Monetisation is about utilization of the existing asset base and usage of the proceeds for new infrastructure creation. 

As per the Finance Minister, Nirmala Sitharaman, only the underutilized assets would be monetised and the plan of the Government would identify brownfield assets that need to be better monetised. 

She also said, " The Government is not selling anything."

As per NITI Aayog CEO Amitabh Kant, " We are fully committed to delivering success to the National Monetisation Pipeline. We feel that it is very important to bring in the private sector for better operation and maintenance. Therefore, we are committed to very strong delivery on the ground."

The asset monetisation would be helpful in new infrastructure creation, recycling of future assets and to build a multiplier effect on growth and revival of credit flow. 

Active private participation would help the government monetise the assets better and put further investment into infrastructure building. 

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