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National Monetization Pipeline

National Monetization Pipeline:

The Centre has decided to conduct an Asset Recycling Drive under the National Monetization Pipeline (NMP), aiming to generate resources for new investments in infrastructure.

  • The Centre’s asset recycling drive is expected to generate around Rs 1.5 trillion in the fiscal year 2024-25.
  • Transactions with monetisation values of around Rs 0.97 trillion were completed in 2021-22, and Rs 1.32 trillion in 2022-23.
  • National Monetisation Pipeline (NMP) envisages an aggregate monetisation potential of Rs 6-lakh crore through the leasing of core assets of the Central government in sectors such as roads, railways, power, oil and gas pipelines, telecom, civil aviation etc, over a four-year period (FY 2022-25).
  • The Monetization through NMP only includes core assets, excluding monetization through disinvestment of non-core assets.
  • Currently, only assets of central government line ministries and CPSEs in infrastructure sectors have been included.
  • The government is currently in the process of coordinating and collating asset pipelines from states to expand the scope of the NMP, incorporating assets at both the central and state levels in due course.
  • To streamline the process, the monetization of non-core assets, including land, real estate, and infrastructure, is being transferred from the Department of Investment and Public Asset Management (DIPAM) to the Department of Public Enterprises (DPE) within the Ministry of Finance.
  • This pipeline is intended to support investments under the National Infrastructure Pipeline (NIP) worth Rs 111 trillion in six years through FY25.
  • The timeline for the NMP has been strategically set to be co-terminus with the remaining period under the National Infrastructure Pipeline (NIP).