{"id":128275,"date":"2021-08-24T17:26:08","date_gmt":"2021-08-24T11:56:08","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=128275"},"modified":"2021-08-26T11:26:59","modified_gmt":"2021-08-26T05:56:59","slug":"finance-minister-launches-the-national-monetisation-pipeline","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/finance-minister-launches-the-national-monetisation-pipeline\/","title":{"rendered":"Finance Minister launches the National Monetisation Pipeline"},"content":{"rendered":"<p><b>Source: <\/b><a href=\"https:\/\/epaper.thehindu.com\/Home\/MShareArticle?OrgId=GG28THU1G.1&amp;imageview=0\" target=\"_blank\" rel=\"noopener\"><b>The Hindu<\/b><\/a>,<strong> <a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/finance-minister-fm-nirmala-sitharaman-launches-national-monetisation-pipeline-nmp-7466745\/\" target=\"_blank\" rel=\"noopener\">Indian Express<\/a>, <a href=\"https:\/\/epaper.livemint.com\/Home\/ShareArticle?OrgId=248e3d03d9b&amp;imageview=0\" target=\"_blank\" rel=\"noopener\">Livemint<\/a> and <a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=1748297\" target=\"_blank\" rel=\"noopener\">PIB<\/a><\/strong><\/p>\n<h5><b>What is the News?<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">The Union Minister for Finance has launched the National Monetisation Pipeline.<\/span><\/p>\n<h5><b>About National Monetisation Pipeline:<\/b><\/h5>\n<p><b>Prepared by: <\/b>It was prepared by <span style=\"font-weight: 400;\">NITI Aayog in consultation with infrastructure line ministries, based on the mandate for \u2018Asset Monetisation\u2019 under Union Budget 2021-22.\u00a0<\/span><\/p>\n<p><b>Note:<\/b> <span style=\"font-weight: 400;\">Asset monetisation consists of a limited period transfer of performing assets (or disposing of non-strategic \/ underperforming assets) to unlock \u201cidle\u201d capital and reinvesting it in other assets or projects that deliver improved or additional benefits.<\/span><\/p>\n<p><b>Objectives:<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To unlock the value of investments in brownfield public sector assets by tapping institutional and long-term capital, which can thereafter be leveraged for public investments.<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><strong>A brownfield investment <\/strong>is a form of investment in which a company or government entity purchases or leases existing production facilities to launch a new production activity.<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To enable \u2018Infrastructure Creation through Monetisation\u2019 wherein the public and private sector collaborate, each excelling in their core areas of competence, so as to deliver socio-economic growth.<\/span><\/li>\n<\/ol>\n<h5><b>Key Features of the Plan:<\/b><\/h5>\n<figure id=\"attachment_128286\" aria-describedby=\"caption-attachment-128286\" style=\"width: 667px\" class=\"wp-caption alignnone\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-128286\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/08\/National-Monetisation-Pipeline.png?resize=667%2C492&#038;ssl=1\" alt=\"National Monetisation Pipeline\" width=\"667\" height=\"492\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/08\/National-Monetisation-Pipeline.png?w=844&amp;ssl=1 844w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/08\/National-Monetisation-Pipeline.png?resize=300%2C221&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/08\/National-Monetisation-Pipeline.png?resize=768%2C566&amp;ssl=1 768w\" sizes=\"auto, (max-width: 667px) 100vw, 667px\" \/><figcaption id=\"caption-attachment-128286\" class=\"wp-caption-text\">Source: Livemint<\/figcaption><\/figure>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The National Monetisation Pipeline comprises a four-year pipeline from 2022-2025 of the central government&#8217;s brownfield Infrastructure Assets.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The top three sectors identified for asset monetisation include railways, airports and coal mining.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Besides these, assets such as roads, power transmission lines and gas pipelines will also be part of the monetisation plan.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Under the plan, private firms can invest in projects for a fixed return using the <a href=\"https:\/\/forumias.com\/blog\/nhai-resumes-infrastructure-investment-trust-project-with-roadshows\/\" target=\"_blank\" rel=\"noopener\">Infrastructure<\/a><\/span><span style=\"font-weight: 400;\">\u00a0investment trusts(InvITs)<\/span><span style=\"font-weight: 400;\"> route as well as operate and develop the assets for a certain period before transferring them back to the government agency.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Hence, the ownership (of assets) will remain with the government and there will be a mandatory hand back after a certain time.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Moreover, only under-utilised assets will be monetised, and the plan will help identify brownfield assets that need to be better monetised.<\/span><\/li>\n<\/ol>\n<p><b>Challenges of NMP: <\/b><span style=\"font-weight: 400;\">The key challenges that may affect the NMP roadmap are\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Lack\u00a0 of identifiable revenue streams in various assets,<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">level of capacity utilisation in gas and petroleum pipeline networks,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Absence of proper dispute resolution mechanism,<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Regulated tariffs in power sector assets<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Low interest among investors in national highways below four lanes and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Lack of independent sectoral regulators as potential impediments.<\/span><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Source: The Hindu, Indian Express, Livemint and PIB What is the News? The Union Minister for Finance has launched the National Monetisation Pipeline. About National Monetisation Pipeline: Prepared by: It was prepared by NITI Aayog in consultation with infrastructure line ministries, based on the mandate for \u2018Asset Monetisation\u2019 under Union Budget 2021-22.\u00a0 Note: Asset monetisation&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/finance-minister-launches-the-national-monetisation-pipeline\/\">Continue reading <span class=\"screen-reader-text\">Finance Minister launches the National Monetisation Pipeline<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[8671,8782,9277],"class_list":["post-128275","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-changes-in-industrial-policy","tag-government-policies-and-interventions","tag-national-monetisation-pipeline","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700201564},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/128275","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=128275"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/128275\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=128275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=128275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=128275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}