SlideShare a Scribd company logo
1 of 3
National Monetisation Pipeline
Why in News
Recently, the government of India has launched the National Monetisation Pipeline (NMP).
The NMP estimates aggregate monetisation potential of Rs 6 lakh crores through core
assets of the Central Government, over a four-year period, from FY 2022 to FY 2025.
 The plan is in line with Prime Minister's strategic divestment policy, under which the
government will retain presence in only a few identified areas with the rest tapping the
private sector.
Key Points
 About the NMP:
o It aims to unlock value in brownfield projects by engaging the private sector,
transferring to them revenue rights and not ownership in the projects, and
using the funds generated for infrastructure creation across the country.
o The NMP has been announced to provide a clear framework for monetisation
and give potential investors a ready list of assets to generate investment interest.
o Union Budget 2021-22 has identified monetisation of operating public
infrastructure assets as a key means for sustainable infrastructure financing.
o Currently, only assets of central government line ministries and Central
Public Sector Enterprises (CPSEs) in infrastructure sectors have been
included.
o The government has stressed that these are brownfield assets, which have been
“de-risked” from execution risks, and therefore should encourage private
investment.
o Roads, railways and power sector assets will comprise over 66% of the total
estimated value of the assets to be monetised, with the remaining upcoming
sectors including telecom, mining, aviation, ports, natural gas and petroleum
product pipelines, warehouses and stadiums.
 In terms of annual phasing by value, 15% of assets with an indicative
value of Rs 0.88 lakh crore are envisaged for rollout in the current
financial year.
o The NMP will run co-terminus with the Rs 100 lakh crore National
Infrastructure Pipeline (NIP) announced in December 2019.
 The estimated amount to be raised through monetisation is around 14% of
the proposed outlay for the Centre of Rs 43 lakh crore under NIP.
 NIP will enable a forward outlook on infrastructure projects which will
create jobs, improve ease of living, and provide equitable access to
infrastructure for all, thereby making growth more inclusive. NIP includes
economic and social infrastructure projects.
 Other Initiatives for Infrastructure Development include Scheme of
Financial Assistance to States for Capital Expenditure, Industrial
corridors, etc.
Monetisation
 In a monetisation transaction, the government is basically transferring revenue rights to
private parties for a specified transaction period in return for upfront money, a
revenue share, and commitment of investments in the assets.
 Real Estate Investment Trusts (Reits) and Infrastructure Investment Trusts (Invits),
for instance, are the key structures used to monetise assets in the roads and power sectors.
o These are also listed on stock exchanges, providing investors liquidity through
secondary markets as well.
 While these are a structured financing vehicle, other monetisation models on PPP
(Public Private Partnership) basis include:
o Operate Maintain Transfer (OMT),
o Toll Operate Transfer (TOT), and
o Operations, Maintenance & Development (OMD).
 Greenfield vs Brownfield Investment
o Greenfield Project:
 It refers to investment in a manufacturing, office, or other physical
company-related structure or group of structures in an area where no
previous facilities exist.
o Brownfield investment:
 The projects which are modified or upgraded are called brownfield
projects.
 The term is used for purchasing or leasing existing production facilities to
launch a new production activity.
 Associated Challenges:
o Lack of identifiable revenue streams in various assets.
o The slow pace of privatisation in government companies including Air India
and BPCL.
 Further, less-than-encouraging bids in the recently launched PPP initiative
in trains indicate that attracting private investors' interest is not that easy.
o Asset-specific Challenges:
 Low Level of capacity utilisation in gas and petroleum pipeline networks.
 Regulated tariffs in power sector assets.
 Low interest among investors in national highways below four lanes.
 Konkan Railway, for instance, has multiple stakeholders, including state
governments, which own stake in the entity.
Way Forward
 Execution is the Key: While the government has tried to address many challenges,
owing to infrastructure development in the NMP framework, execution of the plan
remains key to its success.
 Dispute Redressal Mechanism: Further, there is a need for an efficient dispute
resolution mechanism.
 Multi-Stakeholder Approach: The success of the infrastructure expansion plan would
depend on other stakeholders playing their due role.
o These include State governments and their public sector enterprises and the
private sector.
o In this context, the Fifteenth Finance Commission has recommended the setting
up of a High-Powered Intergovernmental Group to re-examine the fiscal
responsibility legislation of the Centre and States

More Related Content

What's hot

Infrastructure financing-india
Infrastructure financing-indiaInfrastructure financing-india
Infrastructure financing-indiaMahesh Gujrathi
 
Pradhan Mantri Awas Yojna
Pradhan Mantri Awas YojnaPradhan Mantri Awas Yojna
Pradhan Mantri Awas YojnaJIT KUMAR GUPTA
 
Privatisation 999
Privatisation 999Privatisation 999
Privatisation 999Jithin Zcs
 
Affordable housing in india
Affordable housing in indiaAffordable housing in india
Affordable housing in indiaPramod Kumar
 
Role of infrastructure in economic development
Role of infrastructure in economic developmentRole of infrastructure in economic development
Role of infrastructure in economic developmentKashif Hussain
 
Urban infrastructure-india-2011-report
Urban infrastructure-india-2011-reportUrban infrastructure-india-2011-report
Urban infrastructure-india-2011-reportAnuj Chaturvedi
 
Fiscal policy of india
Fiscal policy of indiaFiscal policy of india
Fiscal policy of indiakushalshakya2
 
comparitive analysis between Andhra Pradesh and Karnataka housing policy.pptx
comparitive analysis between Andhra Pradesh and Karnataka housing policy.pptxcomparitive analysis between Andhra Pradesh and Karnataka housing policy.pptx
comparitive analysis between Andhra Pradesh and Karnataka housing policy.pptxJanhviGupta22
 
Hyderabad Metro Rail - an Urban Redesign Opportunity - Mr. NVS Reddy
Hyderabad Metro Rail - an Urban Redesign Opportunity - Mr. NVS ReddyHyderabad Metro Rail - an Urban Redesign Opportunity - Mr. NVS Reddy
Hyderabad Metro Rail - an Urban Redesign Opportunity - Mr. NVS ReddyIPPAI
 
Elements of national housing policy
Elements of national housing policyElements of national housing policy
Elements of national housing policykvn virinchi
 
Bhubaneshwar Planning
Bhubaneshwar Planning Bhubaneshwar Planning
Bhubaneshwar Planning Rajat Nainwal
 
Disinvestment
DisinvestmentDisinvestment
Disinvestmentdomsr
 
Different problems faced by the private sector
Different problems faced by the private sectorDifferent problems faced by the private sector
Different problems faced by the private sectorDipanway Bhabuk
 
Smart City Mission (India)
Smart City Mission (India)Smart City Mission (India)
Smart City Mission (India)divyanshbatham
 

What's hot (20)

Infrastructure financing-india
Infrastructure financing-indiaInfrastructure financing-india
Infrastructure financing-india
 
Pradhan Mantri Awas Yojna
Pradhan Mantri Awas YojnaPradhan Mantri Awas Yojna
Pradhan Mantri Awas Yojna
 
Privatisation 999
Privatisation 999Privatisation 999
Privatisation 999
 
Affordable housing in india
Affordable housing in indiaAffordable housing in india
Affordable housing in india
 
Role of infrastructure in economic development
Role of infrastructure in economic developmentRole of infrastructure in economic development
Role of infrastructure in economic development
 
National Housing Policies- Jyoti arora
National Housing Policies- Jyoti aroraNational Housing Policies- Jyoti arora
National Housing Policies- Jyoti arora
 
Urban infrastructure-india-2011-report
Urban infrastructure-india-2011-reportUrban infrastructure-india-2011-report
Urban infrastructure-india-2011-report
 
Fiscal policy of india
Fiscal policy of indiaFiscal policy of india
Fiscal policy of india
 
comparitive analysis between Andhra Pradesh and Karnataka housing policy.pptx
comparitive analysis between Andhra Pradesh and Karnataka housing policy.pptxcomparitive analysis between Andhra Pradesh and Karnataka housing policy.pptx
comparitive analysis between Andhra Pradesh and Karnataka housing policy.pptx
 
Municipal finance
Municipal financeMunicipal finance
Municipal finance
 
Hyderabad Metro Rail - an Urban Redesign Opportunity - Mr. NVS Reddy
Hyderabad Metro Rail - an Urban Redesign Opportunity - Mr. NVS ReddyHyderabad Metro Rail - an Urban Redesign Opportunity - Mr. NVS Reddy
Hyderabad Metro Rail - an Urban Redesign Opportunity - Mr. NVS Reddy
 
RERA and its impact
RERA and its impactRERA and its impact
RERA and its impact
 
Elements of national housing policy
Elements of national housing policyElements of national housing policy
Elements of national housing policy
 
Bhubaneshwar Planning
Bhubaneshwar Planning Bhubaneshwar Planning
Bhubaneshwar Planning
 
Disinvestment
DisinvestmentDisinvestment
Disinvestment
 
Amrut ppt
Amrut pptAmrut ppt
Amrut ppt
 
TDR - TRANSFER OF DEVELOPMENT RIGHTS
TDR - TRANSFER OF DEVELOPMENT RIGHTSTDR - TRANSFER OF DEVELOPMENT RIGHTS
TDR - TRANSFER OF DEVELOPMENT RIGHTS
 
Different problems faced by the private sector
Different problems faced by the private sectorDifferent problems faced by the private sector
Different problems faced by the private sector
 
Smart City Mission (India)
Smart City Mission (India)Smart City Mission (India)
Smart City Mission (India)
 
Urban infrastructure in india
Urban infrastructure in indiaUrban infrastructure in india
Urban infrastructure in india
 

Similar to National monetisation pipeline

National monetisation project by Bhawna Bhardwaj
National monetisation project by Bhawna BhardwajNational monetisation project by Bhawna Bhardwaj
National monetisation project by Bhawna BhardwajBhawnaBhardwaj24
 
National monetisation project
National monetisation projectNational monetisation project
National monetisation projectBhawnaBhardwaj24
 
Budget FY16-17 : An opportunity to revitalise the infrastructure sector
Budget FY16-17 : An opportunity to revitalise the infrastructure sectorBudget FY16-17 : An opportunity to revitalise the infrastructure sector
Budget FY16-17 : An opportunity to revitalise the infrastructure sectorZubin Poonawalla
 
Sectoral Infrastructure Development
Sectoral Infrastructure DevelopmentSectoral Infrastructure Development
Sectoral Infrastructure DevelopmentGAURAV. H .TANDON
 
Saji sir ready
Saji sir readySaji sir ready
Saji sir readykishanb79
 
Budget Impact on Infrastructure Sector
Budget Impact on Infrastructure Sector   Budget Impact on Infrastructure Sector
Budget Impact on Infrastructure Sector kishanb79
 
Policy and Infrastructure Development
Policy and Infrastructure DevelopmentPolicy and Infrastructure Development
Policy and Infrastructure DevelopmentTseringodrub Gurung
 
GRP 2 PRESENTATION (5) (2).pptx
GRP 2 PRESENTATION (5) (2).pptxGRP 2 PRESENTATION (5) (2).pptx
GRP 2 PRESENTATION (5) (2).pptxBarshaSahu15
 
SECOND high level commitie report ON INFRASTRUCTURE PROJECT
SECOND high level commitie report ON INFRASTRUCTURE PROJECTSECOND high level commitie report ON INFRASTRUCTURE PROJECT
SECOND high level commitie report ON INFRASTRUCTURE PROJECTMANI SHANKAR DWIVEDI
 
Infrastructure
InfrastructureInfrastructure
Infrastructureasakita
 
VIETNAM - PUBLIC-PRIVATE PARTNERSHIPS – What you must know:
VIETNAM - PUBLIC-PRIVATE PARTNERSHIPS – What you must know:VIETNAM - PUBLIC-PRIVATE PARTNERSHIPS – What you must know:
VIETNAM - PUBLIC-PRIVATE PARTNERSHIPS – What you must know:Dr. Oliver Massmann
 
A Basic Guide to Infrastructure Business, Investing and Financing in India
A Basic Guide to Infrastructure Business, Investing and Financing in IndiaA Basic Guide to Infrastructure Business, Investing and Financing in India
A Basic Guide to Infrastructure Business, Investing and Financing in IndiaEmpowerhosting
 
A Basic guide to Infrastructure Business and Financing in India by Netz Capit...
A Basic guide to Infrastructure Business and Financing in India by Netz Capit...A Basic guide to Infrastructure Business and Financing in India by Netz Capit...
A Basic guide to Infrastructure Business and Financing in India by Netz Capit...atulpkhekade
 
India's relationship with world in infrastructre and opportunities in fdi
India's relationship with world in infrastructre and opportunities in fdiIndia's relationship with world in infrastructre and opportunities in fdi
India's relationship with world in infrastructre and opportunities in fdiJinto Cv
 
Infrastructure financing guide india netz capital
Infrastructure financing guide india netz capitalInfrastructure financing guide india netz capital
Infrastructure financing guide india netz capitalAtul Khekade
 
A Basic Guide to infrastructure business development investment and financing...
A Basic Guide to infrastructure business development investment and financing...A Basic Guide to infrastructure business development investment and financing...
A Basic Guide to infrastructure business development investment and financing...atulpkhekade
 

Similar to National monetisation pipeline (20)

National monetisation project by Bhawna Bhardwaj
National monetisation project by Bhawna BhardwajNational monetisation project by Bhawna Bhardwaj
National monetisation project by Bhawna Bhardwaj
 
National monetisation project
National monetisation projectNational monetisation project
National monetisation project
 
Budget FY16-17 : An opportunity to revitalise the infrastructure sector
Budget FY16-17 : An opportunity to revitalise the infrastructure sectorBudget FY16-17 : An opportunity to revitalise the infrastructure sector
Budget FY16-17 : An opportunity to revitalise the infrastructure sector
 
Sectoral Infrastructure Development
Sectoral Infrastructure DevelopmentSectoral Infrastructure Development
Sectoral Infrastructure Development
 
C0362021025
C0362021025C0362021025
C0362021025
 
Saji sir ready
Saji sir readySaji sir ready
Saji sir ready
 
Budget Impact on Infrastructure Sector
Budget Impact on Infrastructure Sector   Budget Impact on Infrastructure Sector
Budget Impact on Infrastructure Sector
 
Policy and Infrastructure Development
Policy and Infrastructure DevelopmentPolicy and Infrastructure Development
Policy and Infrastructure Development
 
Indian budget 2011 2012
Indian budget 2011 2012Indian budget 2011 2012
Indian budget 2011 2012
 
GRP 2 PRESENTATION (5) (2).pptx
GRP 2 PRESENTATION (5) (2).pptxGRP 2 PRESENTATION (5) (2).pptx
GRP 2 PRESENTATION (5) (2).pptx
 
CII Policy Watch July 2015
CII Policy Watch July 2015CII Policy Watch July 2015
CII Policy Watch July 2015
 
SECOND high level commitie report ON INFRASTRUCTURE PROJECT
SECOND high level commitie report ON INFRASTRUCTURE PROJECTSECOND high level commitie report ON INFRASTRUCTURE PROJECT
SECOND high level commitie report ON INFRASTRUCTURE PROJECT
 
Infrastructure
InfrastructureInfrastructure
Infrastructure
 
VIETNAM - PUBLIC-PRIVATE PARTNERSHIPS – What you must know:
VIETNAM - PUBLIC-PRIVATE PARTNERSHIPS – What you must know:VIETNAM - PUBLIC-PRIVATE PARTNERSHIPS – What you must know:
VIETNAM - PUBLIC-PRIVATE PARTNERSHIPS – What you must know:
 
Budget Presentation
Budget PresentationBudget Presentation
Budget Presentation
 
A Basic Guide to Infrastructure Business, Investing and Financing in India
A Basic Guide to Infrastructure Business, Investing and Financing in IndiaA Basic Guide to Infrastructure Business, Investing and Financing in India
A Basic Guide to Infrastructure Business, Investing and Financing in India
 
A Basic guide to Infrastructure Business and Financing in India by Netz Capit...
A Basic guide to Infrastructure Business and Financing in India by Netz Capit...A Basic guide to Infrastructure Business and Financing in India by Netz Capit...
A Basic guide to Infrastructure Business and Financing in India by Netz Capit...
 
India's relationship with world in infrastructre and opportunities in fdi
India's relationship with world in infrastructre and opportunities in fdiIndia's relationship with world in infrastructre and opportunities in fdi
India's relationship with world in infrastructre and opportunities in fdi
 
Infrastructure financing guide india netz capital
Infrastructure financing guide india netz capitalInfrastructure financing guide india netz capital
Infrastructure financing guide india netz capital
 
A Basic Guide to infrastructure business development investment and financing...
A Basic Guide to infrastructure business development investment and financing...A Basic Guide to infrastructure business development investment and financing...
A Basic Guide to infrastructure business development investment and financing...
 

More from Col Mukteshwar Prasad

The Psychology Behind Unethical Behavior 2.0.pptx
The Psychology Behind Unethical Behavior 2.0.pptxThe Psychology Behind Unethical Behavior 2.0.pptx
The Psychology Behind Unethical Behavior 2.0.pptxCol Mukteshwar Prasad
 
Emotions and Types of Emotional Responses.pptx
Emotions and Types of Emotional Responses.pptxEmotions and Types of Emotional Responses.pptx
Emotions and Types of Emotional Responses.pptxCol Mukteshwar Prasad
 
Attachement Styles in Adulthood 2.0.pptx
Attachement Styles in Adulthood 2.0.pptxAttachement Styles in Adulthood 2.0.pptx
Attachement Styles in Adulthood 2.0.pptxCol Mukteshwar Prasad
 
Oppostion Defiant Disorder(ODD).pptx
Oppostion Defiant Disorder(ODD).pptxOppostion Defiant Disorder(ODD).pptx
Oppostion Defiant Disorder(ODD).pptxCol Mukteshwar Prasad
 
7.Defense mechanisms-Major Image-Distorting Defense Level.pptx
7.Defense mechanisms-Major Image-Distorting Defense Level.pptx7.Defense mechanisms-Major Image-Distorting Defense Level.pptx
7.Defense mechanisms-Major Image-Distorting Defense Level.pptxCol Mukteshwar Prasad
 
6.Defense mechanisms-Disavowal Defense Level.pptx
6.Defense mechanisms-Disavowal Defense Level.pptx6.Defense mechanisms-Disavowal Defense Level.pptx
6.Defense mechanisms-Disavowal Defense Level.pptxCol Mukteshwar Prasad
 
5.Defense mechanisms-Minor Image-Distorting Defense Level.pptx
5.Defense mechanisms-Minor Image-Distorting Defense Level.pptx5.Defense mechanisms-Minor Image-Distorting Defense Level.pptx
5.Defense mechanisms-Minor Image-Distorting Defense Level.pptxCol Mukteshwar Prasad
 

More from Col Mukteshwar Prasad (20)

The Psychology Behind Unethical Behavior 2.0.pptx
The Psychology Behind Unethical Behavior 2.0.pptxThe Psychology Behind Unethical Behavior 2.0.pptx
The Psychology Behind Unethical Behavior 2.0.pptx
 
BAD BOSS.pptx
BAD BOSS.pptxBAD BOSS.pptx
BAD BOSS.pptx
 
Mindset 2.0.pptx
Mindset 2.0.pptxMindset 2.0.pptx
Mindset 2.0.pptx
 
Why Psychology Theory 2.0.pptx
Why Psychology Theory 2.0.pptxWhy Psychology Theory 2.0.pptx
Why Psychology Theory 2.0.pptx
 
Personology Murray.pptx
Personology Murray.pptxPersonology Murray.pptx
Personology Murray.pptx
 
Emotions and Types of Emotional Responses.pptx
Emotions and Types of Emotional Responses.pptxEmotions and Types of Emotional Responses.pptx
Emotions and Types of Emotional Responses.pptx
 
Understanding Anger.pptx
Understanding Anger.pptxUnderstanding Anger.pptx
Understanding Anger.pptx
 
Cognitive Distortions New.pptx
Cognitive Distortions New.pptxCognitive Distortions New.pptx
Cognitive Distortions New.pptx
 
Trauma Bonding.pptx
Trauma Bonding.pptxTrauma Bonding.pptx
Trauma Bonding.pptx
 
Emotional Abuse.pptx
Emotional Abuse.pptxEmotional Abuse.pptx
Emotional Abuse.pptx
 
Attachement Styles in Adulthood 2.0.pptx
Attachement Styles in Adulthood 2.0.pptxAttachement Styles in Adulthood 2.0.pptx
Attachement Styles in Adulthood 2.0.pptx
 
Conduct Disorder.pptx
Conduct Disorder.pptxConduct Disorder.pptx
Conduct Disorder.pptx
 
Oppostion Defiant Disorder(ODD).pptx
Oppostion Defiant Disorder(ODD).pptxOppostion Defiant Disorder(ODD).pptx
Oppostion Defiant Disorder(ODD).pptx
 
Types of Intelligence.PPT
Types of Intelligence.PPTTypes of Intelligence.PPT
Types of Intelligence.PPT
 
Attachment Theory.pptx
Attachment Theory.pptxAttachment Theory.pptx
Attachment Theory.pptx
 
7.Defense mechanisms-Major Image-Distorting Defense Level.pptx
7.Defense mechanisms-Major Image-Distorting Defense Level.pptx7.Defense mechanisms-Major Image-Distorting Defense Level.pptx
7.Defense mechanisms-Major Image-Distorting Defense Level.pptx
 
e Rupee.docx
e Rupee.docxe Rupee.docx
e Rupee.docx
 
Moonlighting in India.docx
Moonlighting in India.docxMoonlighting in India.docx
Moonlighting in India.docx
 
6.Defense mechanisms-Disavowal Defense Level.pptx
6.Defense mechanisms-Disavowal Defense Level.pptx6.Defense mechanisms-Disavowal Defense Level.pptx
6.Defense mechanisms-Disavowal Defense Level.pptx
 
5.Defense mechanisms-Minor Image-Distorting Defense Level.pptx
5.Defense mechanisms-Minor Image-Distorting Defense Level.pptx5.Defense mechanisms-Minor Image-Distorting Defense Level.pptx
5.Defense mechanisms-Minor Image-Distorting Defense Level.pptx
 

Recently uploaded

diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....Ritu480198
 
Model Attribute _rec_name in the Odoo 17
Model Attribute _rec_name in the Odoo 17Model Attribute _rec_name in the Odoo 17
Model Attribute _rec_name in the Odoo 17Celine George
 
Observing-Correct-Grammar-in-Making-Definitions.pptx
Observing-Correct-Grammar-in-Making-Definitions.pptxObserving-Correct-Grammar-in-Making-Definitions.pptx
Observing-Correct-Grammar-in-Making-Definitions.pptxAdelaideRefugio
 
Simple, Complex, and Compound Sentences Exercises.pdf
Simple, Complex, and Compound Sentences Exercises.pdfSimple, Complex, and Compound Sentences Exercises.pdf
Simple, Complex, and Compound Sentences Exercises.pdfstareducators107
 
Understanding Accommodations and Modifications
Understanding  Accommodations and ModificationsUnderstanding  Accommodations and Modifications
Understanding Accommodations and ModificationsMJDuyan
 
COMMUNICATING NEGATIVE NEWS - APPROACHES .pptx
COMMUNICATING NEGATIVE NEWS - APPROACHES .pptxCOMMUNICATING NEGATIVE NEWS - APPROACHES .pptx
COMMUNICATING NEGATIVE NEWS - APPROACHES .pptxannathomasp01
 
QUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lesson
QUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lessonQUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lesson
QUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lessonhttgc7rh9c
 
Diuretic, Hypoglycemic and Limit test of Heavy metals and Arsenic.-1.pdf
Diuretic, Hypoglycemic and Limit test of Heavy metals and Arsenic.-1.pdfDiuretic, Hypoglycemic and Limit test of Heavy metals and Arsenic.-1.pdf
Diuretic, Hypoglycemic and Limit test of Heavy metals and Arsenic.-1.pdfKartik Tiwari
 
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfFICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfPondicherry University
 
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...EADTU
 
NO1 Top Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
NO1 Top Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...NO1 Top Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
NO1 Top Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...Amil baba
 
What is 3 Way Matching Process in Odoo 17.pptx
What is 3 Way Matching Process in Odoo 17.pptxWhat is 3 Way Matching Process in Odoo 17.pptx
What is 3 Way Matching Process in Odoo 17.pptxCeline George
 
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPSSpellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPSAnaAcapella
 
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptxHMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptxmarlenawright1
 
Ernest Hemingway's For Whom the Bell Tolls
Ernest Hemingway's For Whom the Bell TollsErnest Hemingway's For Whom the Bell Tolls
Ernest Hemingway's For Whom the Bell TollsPallavi Parmar
 
When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...Gary Wood
 
Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...EduSkills OECD
 
How to Add a Tool Tip to a Field in Odoo 17
How to Add a Tool Tip to a Field in Odoo 17How to Add a Tool Tip to a Field in Odoo 17
How to Add a Tool Tip to a Field in Odoo 17Celine George
 

Recently uploaded (20)

diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....
 
Model Attribute _rec_name in the Odoo 17
Model Attribute _rec_name in the Odoo 17Model Attribute _rec_name in the Odoo 17
Model Attribute _rec_name in the Odoo 17
 
Observing-Correct-Grammar-in-Making-Definitions.pptx
Observing-Correct-Grammar-in-Making-Definitions.pptxObserving-Correct-Grammar-in-Making-Definitions.pptx
Observing-Correct-Grammar-in-Making-Definitions.pptx
 
Simple, Complex, and Compound Sentences Exercises.pdf
Simple, Complex, and Compound Sentences Exercises.pdfSimple, Complex, and Compound Sentences Exercises.pdf
Simple, Complex, and Compound Sentences Exercises.pdf
 
VAMOS CUIDAR DO NOSSO PLANETA! .
VAMOS CUIDAR DO NOSSO PLANETA!                    .VAMOS CUIDAR DO NOSSO PLANETA!                    .
VAMOS CUIDAR DO NOSSO PLANETA! .
 
OS-operating systems- ch05 (CPU Scheduling) ...
OS-operating systems- ch05 (CPU Scheduling) ...OS-operating systems- ch05 (CPU Scheduling) ...
OS-operating systems- ch05 (CPU Scheduling) ...
 
Understanding Accommodations and Modifications
Understanding  Accommodations and ModificationsUnderstanding  Accommodations and Modifications
Understanding Accommodations and Modifications
 
COMMUNICATING NEGATIVE NEWS - APPROACHES .pptx
COMMUNICATING NEGATIVE NEWS - APPROACHES .pptxCOMMUNICATING NEGATIVE NEWS - APPROACHES .pptx
COMMUNICATING NEGATIVE NEWS - APPROACHES .pptx
 
QUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lesson
QUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lessonQUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lesson
QUATER-1-PE-HEALTH-LC2- this is just a sample of unpacked lesson
 
Diuretic, Hypoglycemic and Limit test of Heavy metals and Arsenic.-1.pdf
Diuretic, Hypoglycemic and Limit test of Heavy metals and Arsenic.-1.pdfDiuretic, Hypoglycemic and Limit test of Heavy metals and Arsenic.-1.pdf
Diuretic, Hypoglycemic and Limit test of Heavy metals and Arsenic.-1.pdf
 
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfFICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
 
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
 
NO1 Top Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
NO1 Top Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...NO1 Top Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
NO1 Top Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
 
What is 3 Way Matching Process in Odoo 17.pptx
What is 3 Way Matching Process in Odoo 17.pptxWhat is 3 Way Matching Process in Odoo 17.pptx
What is 3 Way Matching Process in Odoo 17.pptx
 
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPSSpellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
 
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptxHMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
 
Ernest Hemingway's For Whom the Bell Tolls
Ernest Hemingway's For Whom the Bell TollsErnest Hemingway's For Whom the Bell Tolls
Ernest Hemingway's For Whom the Bell Tolls
 
When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...
 
Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...
 
How to Add a Tool Tip to a Field in Odoo 17
How to Add a Tool Tip to a Field in Odoo 17How to Add a Tool Tip to a Field in Odoo 17
How to Add a Tool Tip to a Field in Odoo 17
 

National monetisation pipeline

  • 1. National Monetisation Pipeline Why in News Recently, the government of India has launched the National Monetisation Pipeline (NMP). The NMP estimates aggregate monetisation potential of Rs 6 lakh crores through core assets of the Central Government, over a four-year period, from FY 2022 to FY 2025.  The plan is in line with Prime Minister's strategic divestment policy, under which the government will retain presence in only a few identified areas with the rest tapping the private sector. Key Points  About the NMP: o It aims to unlock value in brownfield projects by engaging the private sector, transferring to them revenue rights and not ownership in the projects, and using the funds generated for infrastructure creation across the country. o The NMP has been announced to provide a clear framework for monetisation and give potential investors a ready list of assets to generate investment interest. o Union Budget 2021-22 has identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing. o Currently, only assets of central government line ministries and Central Public Sector Enterprises (CPSEs) in infrastructure sectors have been included. o The government has stressed that these are brownfield assets, which have been “de-risked” from execution risks, and therefore should encourage private investment. o Roads, railways and power sector assets will comprise over 66% of the total estimated value of the assets to be monetised, with the remaining upcoming sectors including telecom, mining, aviation, ports, natural gas and petroleum product pipelines, warehouses and stadiums.  In terms of annual phasing by value, 15% of assets with an indicative value of Rs 0.88 lakh crore are envisaged for rollout in the current financial year. o The NMP will run co-terminus with the Rs 100 lakh crore National Infrastructure Pipeline (NIP) announced in December 2019.  The estimated amount to be raised through monetisation is around 14% of the proposed outlay for the Centre of Rs 43 lakh crore under NIP.  NIP will enable a forward outlook on infrastructure projects which will create jobs, improve ease of living, and provide equitable access to infrastructure for all, thereby making growth more inclusive. NIP includes economic and social infrastructure projects.  Other Initiatives for Infrastructure Development include Scheme of Financial Assistance to States for Capital Expenditure, Industrial corridors, etc.
  • 2. Monetisation  In a monetisation transaction, the government is basically transferring revenue rights to private parties for a specified transaction period in return for upfront money, a revenue share, and commitment of investments in the assets.  Real Estate Investment Trusts (Reits) and Infrastructure Investment Trusts (Invits), for instance, are the key structures used to monetise assets in the roads and power sectors. o These are also listed on stock exchanges, providing investors liquidity through secondary markets as well.  While these are a structured financing vehicle, other monetisation models on PPP (Public Private Partnership) basis include: o Operate Maintain Transfer (OMT), o Toll Operate Transfer (TOT), and o Operations, Maintenance & Development (OMD).  Greenfield vs Brownfield Investment o Greenfield Project:  It refers to investment in a manufacturing, office, or other physical company-related structure or group of structures in an area where no previous facilities exist. o Brownfield investment:  The projects which are modified or upgraded are called brownfield projects.  The term is used for purchasing or leasing existing production facilities to launch a new production activity.  Associated Challenges: o Lack of identifiable revenue streams in various assets. o The slow pace of privatisation in government companies including Air India and BPCL.  Further, less-than-encouraging bids in the recently launched PPP initiative in trains indicate that attracting private investors' interest is not that easy. o Asset-specific Challenges:  Low Level of capacity utilisation in gas and petroleum pipeline networks.  Regulated tariffs in power sector assets.  Low interest among investors in national highways below four lanes.  Konkan Railway, for instance, has multiple stakeholders, including state governments, which own stake in the entity. Way Forward  Execution is the Key: While the government has tried to address many challenges, owing to infrastructure development in the NMP framework, execution of the plan remains key to its success.  Dispute Redressal Mechanism: Further, there is a need for an efficient dispute resolution mechanism.
  • 3.  Multi-Stakeholder Approach: The success of the infrastructure expansion plan would depend on other stakeholders playing their due role. o These include State governments and their public sector enterprises and the private sector. o In this context, the Fifteenth Finance Commission has recommended the setting up of a High-Powered Intergovernmental Group to re-examine the fiscal responsibility legislation of the Centre and States