FM Nirmala Sitharaman introduces National Monetisation Pipeline (NMP) worth Rs. 6 lakh crores

Finance Minister Nirmala Sitharaman has launched the National Monetisation Pipeline today — a four-year road map for the central government’s privatization of infrastructure assets. The government has announced Rs 6 lakh crore National Monetisation Plan.

Finance Minister Nirmala Sitharaman said assets being given out under the National Monetisation Pipeline will still be owned by the government, and will be returned to the government after a period of time.

The government will not sell off any assets, but only utilise them in a better manner, the finance minister said and emphasised that the entire exercise will generate greater value and unlock resources for the economy.

The government will monetise assets worth ₹ 1.6 lakh crore from the roads sector, ₹ 1.5 lakh crore from the railway sector and ₹ 79,000 crore from the power sector. The centre will also monetise ₹ 20,800 crore from airports, ₹ 13,000 crore from ports, ₹ 35,000 crore from telecom, ₹ 11,500 crore from stadiums and ₹ 45,200 crore from power transmission sectors.

Most of the asset monetisation will take place either through the InvIT mode or public-private partnerships.

She said that if a state government divests its stake in a public sector undertaking, the state government will receive 100 percent of the value of the divestment, from the central government, in the state’s budget for the next financial year.

Similarly, if a state government lists a public sector undertaking in the stock markets, the central government will give them 50 percent of that amount raised by listing, in the state’s budget for the next financial year.

Finally, if a state government monetises an asset, it will receive 33 of the amount raised from monetisation in its budget for the next financial year. Sitharaman had announced National Monetisation Pipeline during Union Budget 2021.