The aggregate monetisation potential under the National Monetisation Pipeline (NMP) has been estimated at Rs 6 lakh crore through core assets of the government, over four years from FY22 to FY25, according to the Economic Survey 2023-24 tabled on July 22.
The survey stated that the pipeline contained more than 20 asset classes across 12 ministries. The NMP was announced in August 2021 on the principle of ‘asset creation through monetisation’, which means tapping private sector investment for new infrastructure creation.
“Ministries are proactively working on developing a pipeline and transactions have been undertaken in line with their strategic initiatives,” the survey said.
During the first two years, i.e., 2021-22 and 2022-23, transactions aggregating to about Rs 2.3 lakh crore in accruals or private investments were completed under the core asset monetisation programme, the survey said.
Further, in 2023-24, transactions aggregating to Rs 1.51 lakh crore in accruals or private investments were completed, 1.55 times those achieved in 2021-22, it added.
Tapping on private investment, funds garnered through asset monetisation in the roads sector have exceeded Rs 1 lakh crore since FY19. Notably, the government achieved its highest-ever asset monetisation revenues of Rs 40,314 crore in FY24, the survey said.
On August 23, 2021, the government announced the NMP intending to monetise existing infrastructure assets to raise funds to finance future projects. The ambitious plan sought to lure private sector investment in infrastructure that had low project execution risk to bridge the gap between the need and availability of the capex-intensive infrastructure sector.
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