FM's asset monetisation plan, road to privatisation?

Ground Report | New Delhi: FM's asset monetisation plan; The Union government on August 23 announced that it will monetize assets worth INR 6 lakh crore between 2021-22 and 2024-25 under the National Monetization Pipeline INMP, which was launched by Finance Minister Nirmala Sitharaman in New Delhi. The proceeds will be used to finance the Rs 110 lakh crore national infrastructure pipeline.

FM's asset monetisation plan

Finance Minister Sitharaman will release the book National Monetization Pipeline on Monday which will lay the roadmap for monetization of such assets. The book has been prepared by CRISIL Infrastructure Advisory, a branch of CRISIL. The NMP seeks to provide visibility to investors and will serve as a medium-term roadmap for the Centre's asset monetization campaign.

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The emphasis was on asset monetization to mobilize innovative and alternative financing for infrastructure in the Union Budget 2021-22. “Monetization of public infrastructure assets is a very important financing option for the creation of new infrastructure. A national monetization pipeline of potential brownfield infrastructure assets will be launched,” she had said.

What is asset monetization anyway?

Asset monetization is the process of creating new sources of revenue for the government by unlocking the economic value of unused or underutilized public assets. A public asset is any asset, tangible or intangible, owned by a public body.

The plan proposes better utilization during the time frame of the monetization plan, not the sale of assets. As per the plan, the government aims to raise INR 88000 crores in the current fiscal, INR 1.6 lakh crores in 2022-23, INR 1.8 lakh crores in 2023-24, and INR 1.6 lakh crores in 2024-25R.

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Which properties will be monetized

NITI Aayog has prepared a detailed plan from which assets money can be raised. Here is his list.

• According to the plan of NITI Aayog, 26,700 km of roads will be monetised. Under this, existing and being constructed National Highways will be included. The monetization would include only national highways having four lanes or more. Under this, the national highways of Rajasthan, West Bengal, Gujarat and Bihar may be included in the first phase.

• 400 railway stations, 90 passenger trains, a rail route of 1400 km, Konkan Railway, 4 mountain railways, 15 railway stadiums and colonies etc.

• 2.86 lakh kilometer Bharat Net fiber project and 14917 BSNL and MTNL towers

• Petroleum Product Pipeline, LPG Pipeline, Hydrogen Generation Plant etc.
• 160 Mining Projects

• 25 Airports (Varanasi, Bhubaneshwar, Amritsar, Raipur, Indore, Trichy, Patna, Nagpur, Ranchi, Dehradun, Bhopal, Imphal etc.)

• 2 National Stadiums and 2 Regional Centers

Other provisions:

• If a state government sells its stake in a public sector undertaking, it will receive 100% of the value of disinvestment from the central government.

• If a state government lists a public sector undertaking on the stock exchanges, the central government will give 50% of the amount raised by listing them.

• If a state government monetises any asset, it will get 33% of the amount raised from monetization.

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