Government eyes Rs88,000 crore from asset monetization in FY22
Premium- Under NMP which was unveiled on Monday, annual targets have been set at Rs1.62 trillion for FY23, Rs1.79 trillion for FY24 and Rs1.67 trillion for FY25
Government eyes to garner ₹88,000 crore in FY22 through monetization of existing infrastructure projects in sectors such as road, railways, power, gas pipelines under the ₹6 trillion National Monetisation Pipeline spread over the next four years.
Under NMP which was unveiled on Monday, annual targets have been set at ₹1.62 trillion for FY23, 1.79 trillion for FY24 and 1.67 trillion for FY25.
Finance minister Nirmala Sitharaman said national monetization pipeline will be co-terminous with the national infrastructure pipeline from this year onwards. “There won’t be any land sale happening under it. The NMP is talking about brownfield assets where investment has already been made, which are either languishing, not fully monetized or remaining under utilised. So by bringing in private participation, you are going to monetize it better and with whatever resource you are getting, you can put it into further infrastructure creation," she added.
Rajiv Kumar, vice chairman, Niti Aayog said the asset monetization does not in any case represent a handover of the ownership of these assets, neither does it represent any form of fire sale. “A fair value will be achieved by transparent, accountable mechanisms and at the end of the day, these assets will be handed over back to the government for further utilization," he added.
Kumar said for example, all PSUs have their guest houses in all the cities all across the country and these can be brought together and created a much better utilization through public private participation. “The opportunity and potential is quite large going forward," he added.
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