National Monetisation Pipeline

About NMP

Pursuant to the announcement made in the Union Budget 2021-22, the National Monetisation Pipeline (NMP) was prepared by NITI Aayog in collaboration with the concerned Infrastructure Ministries.
NMP lists out assets and asset classes, under various infrastructure ministries, which will be monetised during the period 2021-22 to 2024-25.
The NMP included assets with monetisation potential of Rs. 6 lakh crore during the four year period (2021-22 to 2024-25).

Asset Monetization:

In India, the idea of asset monetisation was first suggested by a committee led by economist Vijay Kelkar in 20121 on the roadmap for fiscal consolidation.
The committee had recommended that the government should start monetisation to raise resources for further development and financing infrastructure needs.
Asset monetisation is the process of creating new sources of revenue for the government and its entities by unlocking the economic value of unutilised or underutilised public assets.
As a concept, asset monetisation implies offering public infrastructure to the institutional investors or private sector through structured mechanisms.
Monetisation is different from ‘privatisation’, in fact, it signifies ‘structured partnerships’ with the private sector under certain contractual frameworks.

Why in News?

The National Monetisation Pipeline has monetised Rs 3.85 lakh crore of assets in 3 years.

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