''Monetisation To Start Cycle Of Infra Creation'': Amitabh Kant To NDTV
Amitabh Kant, CEO, NITI Aayog told that the aim of the monetisation plan is to build top-class infra
The objective of the National Monetization Pipeline (NMP) is to enhance capex (capital expenditure) spending and build top-class infrastructure in the country, Amitabh Kant, Chief Executive Officer (CEO), NITI Aayog, told. ''This is a plan spread over four years and the objective is to have a multiplier effect on growth and employment, ensuring that the proceeds from monetising existing assets get into new infrastructure creation, and also lead to the revival of credit flow,'' said Mr Kant in an exclusive interview to.
The comments from the industry leader come two days after Finance Minister Nirmala Sithraman unveiled the Rs 6 lakh crore National Monetisation Pipeline, under which the government will monetise assets worth Rs 1.6 lakh crore from the roads sector, Rs 1.5 lakh crore from the railway sector, and Rs 79,000 crore from the power sector.
Under asset monetisation, the ownership of the asset remains with the government and is a structured contractual partnership with key performance indicators or performance standards, explains Mr Kant. As part of the plan, the government will only monetise under-utilised assets and the brownfield assets will be monetisatised by bringing in private participation.
''Assets have been identified across key central government ministries and public-sector enterprises...there are different models of monetisation which will be used for the purpose,'' added the CEO of the government's think tank.
The pipeline of government's assets is Rs 6 lakh crore - about 14 per cent of the centre's outlay under the National Infrastructure Pipeline (NIP). 12 line ministries and 20 asset classes are involved in the national monetisation pipeline.
When the public sector enterprises such as NHAI, NTPC, Power Grid, GAIL monetise their assets, the resources will be used by these entities for the creation of further infrastructure in that particular sector, according to Mr Kant.
The ministries of railways, roads, transport & highways, power, civil aviation, pipeline & natural gas, shipping ports & waterways, food & public distribution, telecommunications, mining, housing and urban affairs, coal, will be a part of the National Monetisation Pipeline.