JOIN ONLINE / OFFLINE CLASSES . DOWNLOAD MOBILE APP

The National Monetization Pipeline for the brownfield infrastructure assets

National Monetization Pipeline (NMP)

  • The NMP comprises of four-year pipeline of the Union Government’s brownfield infrastructure assets.


  • It will serve as a medium-term roadmap for the Asset Monetization initiative of the government apart from providing visibility for the investors.


  • Introduced in, the 2021-22 Union Budget, laid a lot of emphasis on Asset Monetization as a means to raise innovative and alternative financing for infrastructure.


  • It has to be noted that the government views asset monetization as a strategy for the augmentation and maintenance of infrastructure, and not just a funding mechanism.

 

  • It will raise a fund of Six trillion fund.

What is Asset Monetization?


  • Asset Monetization involves the creation of new sources of revenue by unlocking of the value of hitherto unutilized or underutilized public assets.


  • Internationally we can say is recognized that public assets are a significant resource for all economies.


  • Many public sector assets are sub optimally utilized and could be appropriately monetized to create greater financial leverage and value for the companies and of the equity that the government has invested in them.


  • It helps in the accurate estimation of public assets which would help in the better financial management of government as well as public resources over time.

Source: PIB

Keywords
The National Monetization Pipeline for the brownfield infrastructure assets, UPSC