Govt to raise Rs6 lakh cr from infra assets

Tribune News Service

New Delhi, August 23

Union Finance Minister Nirmala Sitharaman on Monday launched the National Monetisation Pipeline (NMP) to unlock value in infrastructure assets across sectors ranging from power to road and railways that is expected to net Rs 6 lakh crore in over four years.

Looking to pvt sector

Asset monetisation is aimed at tapping private sector investment for new infra creation. — FINMIN

Maintaining that the asset monetisation did not involve selling of land, she said, “We are talking of brownfield assets where investment is already being made, but the assets are either languishing or not fully monetised or underutilised. We will monetise it better with the private sector.” Sitharaman said roads, railways and power were the top three sectors identified for the purpose.

The maximum monetisation is expected from the road sector where Rs 1.6 lakh crore worth of national highways have been identified. The Railways is next with about 400 stations, 150 trains, dedicated freight corridor and tracks, which are expected to yield Rs 1.5 lakh crore. The power sector will see about Rs 45,200 crore from transmission lines and Rs 39,832 crore from hydro, solar, and wind projects of the NHPC, NTPC and Neyveli Lignite.

The National Stadium in Delhi will also be monetised, so will all guest houses of public sector undertakings.

Officials say asset monetisation is not just a funding mechanism, but an overall shift in entrusting infrastructure operations and maintenance to the private sector, which is more efficient and able to quickly adapt to the evolving global and economic reality.

An empowered Core Group of Secretaries on Asset Monetisation (CGAM) under the chairmanship of the Cabinet Secretary has been constituted to monitor its progress.