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National Monetisation Pipeline

Published on August 24, 2021
Current Context: The Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman launched the ‘National Monetisation Pipeline (NMP)’.
National Monetisation Pipeline
  • It is the asset monetisation pipeline of Central ministries and public sector entities.
  • The NMP is developed by NITI Aayog in partnership with infrastructure line ministries. The framing of NMP is done as per the ‘Asset Monetisation’ framed under Union Budget 2021-22.
  • The NMP defines assets and asset classes for various infrastructure ministries, then further it will be monetized for a period of time.
  • It will aggregate monetisation potential of Rs 6 lakh crores through core assets of the Central Government, for a period of four years, i.e. from FY 2022 to FY 2025.
  • The NMP is comprised of Ministries of Roads, Transport & Highways, Railways, Power, Pipeline & Natural Gas, Civil Aviation, Shipping Ports & Waterways, Telecommunications, Food & Public Distribution, Mining, Coal & Housing and Urban Affairs.
  • The NMP considers brownfield assets in which the investment is already made, where there is a completed asset that is either languishing or it is not fully monetised or is under-utilised.
  • Therefore by inducting private participation in this, there will be ease in monetizing the assets in a better way.
  • Asset monetisation is based on the philosophy of creation through monetization by inducting private sector investment for new infrastructure creation. This will also help to create job opportunities, high economic growth, integration of rural and semi-urban areas for public welfare.
  • While launching the NMP, Nirmala Sitharaman mentioned that the ownership of assets will remain with the government and there will be a mandatory hand back. The private sector partners will have to give it back after a duration of time.
  • Static Part: 
    • Brownfield assets: It is the type of investment in which a company or government purchases or lease the existing production facilities in order to launch the new one.

Questions: 

Q.1 Who among the following launched ‘National Monetisation Pipeline (NMP)’?
a. Mansukh Mandaviya
b. Dr. Virendra Kumar
c. Nirmala Sitharaman
d. Narayan Rane

Q.2 Which organisation developed the ‘National Monetisation Pipeline (NMP)’?
a. SEBI
b. SIDBI
c. RBI
d. NITI Aayog
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