Advertisement

Updated August 27th, 2021 at 10:45 IST

Karnataka Youth Congress workers protest Centre's National Monetisation Pipeline plan

The National Monetisation Pipeline, launched by Finance Minister Nirmala Sitharaman on 23 August, aims to monetise Rs 6 lakh crore of brownfield infra assets

Reported by: Piyushi Sharma
Karnataka
Image: ANI/Twitter | Image:self
Advertisement

The Shivamogga district unit of the Youth Congress organised a protest, on Thursday, against the Central government's National Monetisation Pipeline (NMP), in Shivamogga, Karnataka. 

Separately, Indian Youth Congress workers staged a protest outside Shastri Bhawan in Delhi against the BJP-led government's decision to disinvest several state assets through the NMP.

The National Monetisation Pipeline, launched by Finance Minister Nirmala Sitharaman on 23 August, aims to monetise Rs 6 lakh crore of brownfield infrastructure assets over a period of four years from FY2022. 

National Monetisation Pipeline 'a huge tragedy': Rahul Gandhi

Congress leader Rahul Gandhi and West Bengal Chief Minister Mamata Banerjee, among others, have spoken out against the disinvestment move by the Central Government. On Tuesday, Gandhi slammed the Centre's NMP, calling it a "huge tragedy". The Wayanad MP accused Prime Minister Narendra Modi's government of mismanaging the country's economy and said that the NMP was aimed at creating monopolies in certain sectors.

On Monday, Finance Minister Nirmala Sitharaman announced the launching of the National Monetisation Pipeline. Over a four-year period from FY 2022 to FY 2025, NMP estimated a total monetisation potential of Rs 6 lakh crore through the Central Government's core assets. The government's four-year strategy involves the monetising of brownfield infrastructure assets including roads and railroads, as well as power transmission and production and mining, as outlined in the National Monetisation Pipeline plan.

NEP a crucial source for long-term infra spending: Govt

Finance Minister Nirmala Sitharaman informed that through NEP a mandatory hand back will be enforced and that the government retains control of assets. After a specific period of time, the private sector partners will be required to return the government assets.

The government would monetise assets by bringing in private participation, and whatever resources are collected through monetisation will be used for additional infrastructure investment, according to the plan. Sitharaman said that asset monetisation will unlock resources and lead to value unlocking.

The Union Budget for the fiscal year 2021-22 identified the monetisation of running public infrastructure assets as a crucial source of long-term infrastructure funding. The Budget had provided for the preparation of a 'National Monetisation Pipeline' of potential brownfield infrastructure assets.

The report on NMP was created by NITI Aayog in coordination with infrastructural ministries. Over the next four years, infrastructure assets worth Rs. 6 lakh crore will be monetised across the rail, road, and electricity sectors, with projects already identified.

The government plans to sell assets worth Rs. 1.6 lakh crore from roads, Rs. 1.5 lakh crore from railways, and Rs. 79,000 crore from power. Airports will bring in Rs. 20,800 crore, ports will bring in Rs. 13,000 crore, telecom will bring in Rs. 35,000 crore, stadiums will bring in Rs. 11,500 crore and electricity transmission will bring in Rs. 45,200 crore. Most of the asset monetisation will take place either through the InvIT mode or public-private partnerships.

Finance Minister Nirmala Sitharaman added that the end objective of this initiative is to enable infrastructure creation. This is to be done through monetisation with the public and private sector collaborating and each excelling in their core areas of competence. This is expected to deliver socio-economic growth and quality of life to the country's citizens.

(With inputs from ANI, Image: ANI/Twitter)

Advertisement

Published August 27th, 2021 at 10:44 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement
Whatsapp logo