NEW DELHI: The Centre hopes to rake in Rs 6 lakh crore over the next four years by monetising under-utilised infrastructure assets, of which Rs 88,000 crore in the current financial year (FY22) alone.
Unveiling the National Monetisation Pipeline (NMP) here on Monday, Finance Minister Nirmala Sitharaman said projects have been identified across various sectors including roads, railways and power, which is expected to unlock an average of Rs 1.50 lakh crore a year till FY25.
The asset monetisation being envisaged does not involve selling of land and the government is not handing over ownership of these assets to private sectors, the FM stressed.
“It is about monetising brownfield (existing) assets. Ownership of assets will remain with the government and there will be a mandatory handback,” she added.
The government hopes to earn reveneus by bringing in private participation in ‘brownfield assets’, which are either languishing, not fully monetised or remaining under-utilised.
The MNP would cover 12 line ministries and more than 20 asset classes, including roads, railways, ports, airports, warehousing, gas & product pipelines, power, mining, telecom, stadium, hospitality and housing.
The top 5 sectors — roads (27%), Railways (25%), Power (15%), oil & gas pipelines (8%) and Telecom (6%) — account for 83% of the aggregate pipeline value.
For now, the pipeline involves only Central government assets. However, the Centre is encouraging states to identify and monetise their assets and has offered incentives for doing so.
Speaking at the launch, Niti Ayog vice-chairman Rajiv Kumar said: “The strategic objective of the programme is to unlock the value of investments in brownfield public sector assets by tapping institutional and longterm patient capital, which can thereafter be leveraged for further public investments.”
Union Budget 2021-22 had identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing.
Tapping brownfield projects
NMP will include monetisation of brownfield projects but no outright sale of assets.
Total indicative value of NMP has been estimated at Rs 6 lakh crore over 4 years till FY25, with
average realisation of Rs 1.5 lakh a year.
For FY22, the govt aims to realise Rs 88,000 crore through NMP.
52% Railways and roads together contribute 52% of the total NMP value.
Disinvestment and monetisation of noncore assets such as land, building, and pure-play real estate assets not included in the NMP.