National Monetisation Pipeline Only Includes Assets Of Centre, State Assets Out Of Its Purview As Of Now: FM Sitharaman

Union Finance Minister Nirmala Sitharaman on Monday (15 November) said that the recently launched National Monetisation Pipeline (NMP) includes only central government assets and that the assets of the state governments have been out its purview as of now.

Sitharaman made the remarks while interacting with Chief Ministers, Finance Ministers of all State and Lieutenant Governors of UTs via virtual conference on Tuesday.

The Union Finance Minister suggested that there is a significant potentially monetisable asset base in states which could be leveraged to enhance the capital available for new infrastructure creation and other social sector pressing priorities.

The launching of "National Monetisation Pipeline” of potential brownfield infrastructure assets was annouced by Finance Minister Nirmala Sitharaman in February this year during her budget speech.

Later in August, Sitharaman launched the asset monetisation pipeline of Central ministries and public sector entities. The pipeline has been developed by NITI Aayog, in consultation with infrastructure line ministries, based on the mandate for ‘Asset Monetisation’ under Union Budget 2021-22.

The aggregate asset pipeline under NMP over the four-year period, FY 2022-2025, is indicatively valued at Rs 6 lakh crore.

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

In terms of annual phasing by value, 15 per cent of assets with an indicative value of Rs 88,000 lakh crore are envisaged to be rolled out in the current financial year (FY 2021-22).