National Monetisation Pipeline

The Government launched National Monetisation Pipeline on 23rd August 2021 from FY 2022 to FY 2025. It aims to unlock a value of Rs. 6 lakh crore value in brownfield projects by engaging the private sector, transferring rights (not the ownership) in projects, and using the funds for infrastructure creation across the country.

• This pipeline will only include brownfield assets owned by the government, and will not include land assets of the government.
• The plan was developed by NITI Aayog, in consultation with infrastructure line ministries, based on the mandate for ‘Asset Monetisation’ under Union Budget 2021-22.

Key Objective

• Its objective is to enable ‘infrastructure creation through monetisation’ wherein the public and private sector collaborate, each excelling in their core areas of competence, to deliver socio-economic growth and quality of life to the country’s citizens. It will also bring in greater efficiency and transparency in public assets management.

Top Five Sectors for Monetization

• The top 5 sectors (by estimated value) capture almost 83% of the aggregate pipeline value. These top 5 sectors include: Roads (27%) followed by Railways (25%), Power (15%), oil & gas pipelines (8%) and Telecom (6%).

Roads, railways and power will be priority sectors under the Pipeline. It will monetize-

• Rs 1.6 lakh crore worth national highways of NHAI.
• Rs 67,000 crore worth transmission lines from Power Grid.
• Rs 32,000 crore worth Hydro, Solar, and Wind projects from NHPC, NTPC, and Neyveli Lignite.
• 400 stations, about 150 trains, tracks and woodshed worth Rs 1.5 lakh crore.