National Monetisation Pipeline (NMP) Scheme

On August 23, 2021, Union Finance Minister Nirmala Sitharaman launched National Monetisation Pipeline Scheme aiming at tapping private sector investment for infrastructure creation. This scheme is mainly launched for monetising the under-utilized brownfield public assets of central government for infrastructural development. It tends to unlock the value of investments in infrastructure assets. Under this scheme the private sector company will monetized the assets for a fixed tenure say four years. This monetisation will not change the original ownership of the assets. The estimated value of the asset pipeline under this scheme is about Rs. 6 lakh crores over a period of four years from financial year 2022 to 2025.

Scheme Overview:

Scheme Objectives and Benefits:

• The main objective of the scheme is to ensure overall infrastructural development in the country.
• It aims at providing a medium term road map for public asset ownerships
• It tens to monetise the under-utilized brownfield public assets of central government for infrastructural development.
• This scheme aims at encouraging private investor participation thereby facilitating commercial efficiency.
• This scheme tends to increase employment opportunities for youth.
• It will contribute to increase the economic growth of the country.

Key Points:

• Union Finance Minster Nirmala Sitharaman launched National Monetisation Pipeline (NMP) Scheme on August 23, 2021
• Through this scheme the central government is aiming at tapping private sector investment for infrastructure creation.
• This scheme aims at monetising the under-utilized brownfield de-risked public assets of central government for infrastructural development.
• The monetisation of assets under this scheme is in line with the mandate in the union budget 2021-22.
• It tends to unlock the value of investments in infrastructure assets.
• This monetisation will not change the original ownership of the assets.
• After the fixed transactional tenure, the private sector company will return back the assets to the government.
• Sectors covered under the scheme include Roads, Ports, Airports, Railways, Warehousing, Gas & Product Pipeline, Power Generation and Transmission, Mining, Telecom, Stadium, Hospitality and Housing
• NITI Ayog, Finance Ministry and Line Ministry in line with multi stakeholder consultations formulated the scheme.
• The report on NMP is organized in two volumes.
• Volume 1 is structured guidance book and volume 2 is the actual roadmap for monetisation.
• The central government will ensure transparency in this mechanism and will continuously monitor it.
• Total estimated worth is Rs. 6 lakh crores with a proposed outlay of the central government of Rs. 43 lakhs crores.
• This scheme tends to develop overall infrastructure in the country.