OPINION: Demystifying National Monetisation Pipeline and Why India Needs It
News 18India’s National Infrastructure Pipeline envisages an infrastructure investment of Rs 111 lakh crore over a period of five years. One of the strategies among them is ‘asset monetisation’ and the government has paved the way for preparation of a National Monetisation Pipeline of potential brownfield infrastructure assets to provide a medium-term roadmap for monetisation and give potential investors a ready list of assets to generate investment interest. Asset monetisation consists of limited period transfer of unutilised or underutilised public assets to a private sector entity to unlock idle capital and reinvest it in other assets or projects for improved and additional benefits. Asset monetisation or recycling is thus a two-part process where the first part is monetisation of existing assets through sale or lease to the private sector followed by reinvestment in new infrastructure using the proceeds received through asset monetisation. NMP is, thus, an initiative by the government to strategise the asset monetisation of brownfield public sector assets by tapping institutional and long-term capital, which can thereafter be leveraged for further public investments.