The government will raise ₹88,000 crores this year by leasing infrastructure assets of central government ministries and state-run companies under a ₹6 trillion National Monetisation Pipeline (NMP) it unveiled on Monday.
The funds will then be used to build new infrastructure assets, helping boost economic growth in Asia’s third-largest economy.
Annual targets under the four-year pipeline have been set at ₹1.62 trillion for FY23, ₹1.79 trillion for FY24 and ₹1.67 trillion in the following year.
The top five sectors by value under the government’s asset monetization programme are roads (27%), railways (25%), power (15%), oil and gas pipelines (8%) and telecom (6%).
Finance minister Nirmala Sitharaman said the monetization pipeline will be co-terminus with the ₹100 trillion national infrastructure pipeline from this year. “There won’t be any land sale happening under it. The NMP is talking about brownfield assets where investment has already been made, which are either languishing, not fully monetized or remaining underutilized. So, by bringing in private participation, you are going to monetize it better, and with whatever resource you are getting, you can put it into further infrastructure creation,” she added.
