Nirmala Sitharaman launches Rs 6-lakh-crore National Monetisation pipeline. Here's the fine print

24 Aug
2021

Nirmala Sitharaman launches Rs 6-lakh-crore National Monetisation pipeline. Here's the fine print

By Staff Writer

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

"The contractual partnerships which the Govt will enter, in executing the monetization pipeline, will be with full KPIs and performance indicators. This will ultimately help in unlocking resources for the economy," the FM said. NITI Aayog Chief Executive Amitabh Kant said that the plan, which was devised after extensive consultations with related parties would "unlock the value of government investment and public money in infrastructure".

Under the newly announced National Monetisation pipeline,

The pipeline of government assets covers about 14% of the Centre's outlay
NMP covers over 20 asset classes and 12 line ministries

1. Ownership of the brownfield assets to remain with the 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 incentivize States to monetize their assets

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