What is National Monetization Pipeline Scheme

Recently Finance Minister of India Mrs. Nirmala Sitharaman launches a new Scheme " National Monetization Pipeline" .

What is this scheme ?

How it will benefit India ?

Let's Read with a view of TejiMandi.com , they elaborated it very well.

"""In the 2021-22 budget speech, Finance Minister Nirmala Sitharaman has said that monetising operating public infrastructure assets were an important financing option for infrastructure construction. Currently, the government is finalising Rs 6 lakh crore worth of infrastructure assets, which may include national highways and power grid pipelines.

To help bolster the government’s finances, India has been planning to raise Rs 6 trillion from selling state-owned infrastructure assets over the next four years. The plan will include the sale of road and railway projects, airports, gas pipelines etc.

All of these planned sales are in line with Prime Minister Narendra Modi’s strategic divestment policy. The government plans to make sales of about Rs 1.75 trillion to make up for the COVID-19 related drop in the tax revenue. The government sees this move as an asset monetisation strategy to augment and maintain infrastructure and not just a funding mechanism.

For now, the government will put a range of assets on the block for private sector participation. Also, the sale will happen over the next four years.

Reason Behind Asset Monetisation

In the 2021-22 budget, FM Sitharaman said a ‘National Monetisation Pipeline’ of brownfield infrastructure assets will be launched. She also added that an Asset Monetisation dashboard will also be created for tracking the progress and to provide visibility to investors.

According to the website of DIPAM, ‘The objective of the asset monetisation programme of the Government of India (GOI) is to unlock the value of investment made in public assets which have not yielded appropriate or potential returns so far, create hitherto unexplored sources of income for the company and its shareholders, and contribute to a more accurate estimation of public assets which would help in the better financial management of government/public resources over time.’

Is The Plan On-track?

According to experts, the government will take a significant amount of time to get through with the process. The divestment process will need a standard operating procedure (SOP) to successfully sell the assets. The income received from the sales is to narrow the nation’s budget deficit. However, it seems longer than that to achieve the GDP target."""

Source : Tejimandi.com