New Delhi: The Central Government revealed a four-year National Monetisation Pipeline (NMP) with an estimated worth of Rs. 6 lakh crore. It aims to unlock the potential of money in brownfield projects i.e. projects to recycle and re-use hazardous land by engaging the private sector by transferring revenue rights but no ownership in the projects. The govt. aims to use funds generated in various projects across the country.
The government aims to monetize every sector by selling stakes and participation in the private sector. Experts say, it is important to start NMP to boost infrastructure growth, which requires long-term capital that banks are not ready to finance up. The benefits of monetization have been validated by agencies such as the National Highways Authority of India, the need to systematically adopt these initiatives across varied asset classes has provided better infrastructure on roads and highways.
The same Modi Govt. in its first tenure was pushing for demonization. We all remember how the govt. decided to ban 500 and 1000 currency notes to curb terrorism, Black money, and corruption funding. However, it was a hoax. The Govt. aim earlier was to remove federalism in the economy. Now, the tables have turned as govt. aims more participation.
Former Finance Minister, P. Chidambaram has lashed out over NMP. “There is a concept in economics called asset stripping. That is what is happening here. No consultation was held with opposition on this policy. There was no debate in Parliament. The government will never allow discussion on this issue. Prime Minister Narendra Modi fears questions and neither Finance Minister Nirmala Sitharaman answers.”
The time period for NMP (National Monetisation pipeline) is co-terminus with the remaining period of the NIP (National Infrastructure Pipeline) to fulfil its developmental goals. The estimated amount planned to raise through monetization is around 14% of the outlay for the Centre of Rs 43 lakh crore under NIP.