On Monday, Nirmala Sitharaman, the union minister for Finance and Corporate Affairs, will inaugurate the National Monetisation Pipeline in New Delhi. A 4-year pipeline of brownfield assets belonging to the central government is the core concept of the National Monetisation Pipeline (NMP). NMP will act as a medium-term blueprint for the Government’s Asset Monetisation plan and give visibility to investors.
The Union Budget 2021-22 placed a strong focus on Asset Monetisation to raise creative and alternative infrastructure finance and made several significant announcements. The National Monetisation Pipeline book will be launched in the presence of Dr Rajiv Kumar, Vice Chairman of the NITI Aayog, Shri Amitabh Kant, CEO of the NITI Aayog, and Secretaries of crucial line ministries whose assets make up the monetization pipeline.
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The Union Finance Minister announced creating a “National Monetization Pipeline” of potential brownfield infrastructure assets in her Budget speech this year, stating that “monetizing operating public infrastructure assets is a very important financing option.
The NHAIInvIT is receiving five active highways with a total enterprise value of Rs.5,000 crore. Similarly, Rs. 7,000 crores in transmission assets would be handed to the PGCILInvIT. The next batch of airports will be privatized for operations and administration.
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The other key assets under the Asset Monetization Program in infrastructure are: (i) GAIL, IOCL and HPCL pipelines (ii) Other assets relating to rail infrastructure (iii) Sports Stadiums (iv) Warehousing Assets of CPSEs such as Central Warehousing Corporation and NAFED among others (v) Transmission Assets of PGCIL (vi) AAI Airports in Tier II and III cities and (vii) NHAI Operational Toll Roads.
