National Monetisation Pipeline
The Union Finance Minister has launched the National Monetization Pipeline for the brownfield infrastructure assets.
- The NMP comprises a four-year pipeline of the Central Government’s brownfield infrastructure assets.
- Brownfield infrastructure is any previously developed asset that is not currently in use that may be potentially contaminated.
- The term is also used to describe land previously used for industrial or commercial purposes with known or suspected pollution including soil contamination due to hazardous waste.
- It will serve as a medium-term roadmap for the Asset Monetization initiative of the government, apart from providing visibility for the investors.
- Asset Monetization involves creation of new sources of revenue by unlocking of value of unutilized or underutilized public assets.
- Incidentally, the 2021-22 Union Budget, laid a lot of emphasis on Asset Monetization as a means to raise innovative and alternative financing for infrastructure.
- It has to be noted that the government views asset monetization as a strategy for the augmentation and maintenance of infrastructure, and not just a funding mechanism.
Objective of the programme:
- It estimates total monetization potential of Rs 6 lakh crores through core assets of the Central Government, over a four-year period, from FY 2022 to FY 2025.
- To unlock the value of investments in brownfield public sector assets by tapping institutional and long-term capital, which can thereafter be leveraged for public investments.
- To enable ‘Infrastructure Creation through Monetisation’ wherein the public and private sector collaborate, each excelling in their core areas of competence, so as to deliver socio-economic growth.