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Finance Minister Nirmala Sitharaman today laid out a Rs 6-lakh-crore plan to monetize government’s existing asset base and use the proceeds to boost infrastructure.

This pipeline will only include brownfield assets owned by the government, Sitharaman said, and will not include land assets of the government.

Agencies

“The contractual partnerships which the Govt will enter, in executing the monetisation pipeline, will be with full KPIs and performance indicators. This will ultimately help in unlocking resources for the economy,” the FM said.

“Asset monetisation is ultimately aimed at achieving a multiplier impact on growth and employment and reviving credit flow.”

— NITI Aayog CEO Amitabh Kant

NITI Aayog Chief Executive Amitabh Kant said that the plan, which was devised after extensive consultations with related parties would “unlock value of government investment and public money in infrastrucutre”.

Under the newly announced National Monetisation pipeline,

– Pipeline of government assets covers about 14% of Centre’s outlay

– NMP covers over 20 asset classes and 12 line ministries

“The strategic objective of the Asset Monetisation programme is to unlock the value of investments in public sector assets by tapping private sector capital & efficiencies which can thereafter be leveraged for augmentation/greenfield infra creation”

— NITI Aayog VC Rajiv Kumar


1. Ownership of the brownfield assets to remain with government

– There will be a mandatory handback of assets after the stipulated time.

– All assets will be de-risked.

“This will unlock resources for the economy, which is what we want,” the FM said.

2. Centre to incentivise States to monetise their assets

– Incentives to be given as 50-year interest-free loans.

– Upto Rs 5,000 crore already budgeted in the current year.

– If the states divest a PSU, they will receive 100% as financial assistance.

– If they monetize the asset, they will receive 33% of that amount.

– If states list a public company in the stock markets, the government will be give them 50% of that amount.

3. Roads, railways and power to be priority sectors

– Rs 1.6 lakh crore worth national highways of NHAI.

– Rs 67,000 crore worth transmission lines from Power Grid.

– Rs 32,000 crore worth Hydro, Solar, and Wind projects from NHPC, NTPC, and Neyveli Lignite.

– 400 stations, about 150 trains, tracks and woodshed worth Rs 1.5 lakh crore.

National Monetary Pipeline: Nirmala Sitharaman launches Rs 6-lakh-crore National Monetisation pipeline. Here’s the fine print

By ariox