{"id":4652,"date":"2021-08-29T00:09:17","date_gmt":"2021-08-28T18:39:17","guid":{"rendered":"https:\/\/yourcareerheights.com\/?post_type=news&#038;p=4652"},"modified":"2021-09-10T00:11:57","modified_gmt":"2021-09-09T18:41:57","slug":"national-monetisation-pipeline-nmp","status":"publish","type":"news","link":"https:\/\/yourcareerheights.com\/?news=national-monetisation-pipeline-nmp","title":{"rendered":"National Monetisation Pipeline (NMP)"},"content":{"rendered":"<div id=\"pl-4652\"  class=\"panel-layout\" ><div id=\"pg-4652-0\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-4652-0-0\"  class=\"panel-grid-cell\" ><div id=\"panel-4652-0-0-0\" class=\"so-panel widget widget_sow-editor panel-first-child panel-last-child\" data-index=\"0\" ><div class=\"panel-widget-style panel-widget-style-for-4652-0-0-0\" ><div\n\t\t\t\n\t\t\tclass=\"so-widget-sow-editor so-widget-sow-editor-base\"\n\t\t\t\n\t\t>\n<div class=\"siteorigin-widget-tinymce textwidget\">\n\t<h3><a href=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2021\/09\/NMP2.jpg?ssl=1\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4653 alignleft\" src=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2021\/09\/NMP2.jpg?resize=300%2C70&#038;ssl=1\" alt=\"\" width=\"300\" height=\"70\" data-wp-pid=\"4653\" srcset=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2021\/09\/NMP2.jpg?resize=300%2C70&amp;ssl=1 300w, https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2021\/09\/NMP2.jpg?resize=1024%2C238&amp;ssl=1 1024w, https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2021\/09\/NMP2.jpg?resize=768%2C178&amp;ssl=1 768w, https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2021\/09\/NMP2.jpg?w=1250&amp;ssl=1 1250w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Union Minister for Finance and Corporate Affairs, Smt Nirmala Sitharaman, launched the asset monetisation pipeline of Central ministries and public sector entities: '<a href=\"https:\/\/www.niti.gov.in\/national-monetisation-pipeline\" target=\"_blank\" rel=\"noopener\"><strong>National Monetisation Pipeline (NMP Volumes 1 &amp; 2)<\/strong><\/a>'. NITI Aayog has developed the pipeline, in consultation with infrastructure line ministries, based on the mandate for 'Asset Monetisation' under Union Budget 2021-22. NMP estimates aggregate monetisation potential of\u00a0<strong>Rs 6.0 lakh crores<\/strong>\u00a0through core assets of the Central Government, over a four-year period, from FY 2022 to FY 2025.<\/h3>\n<p>Asset monetisation, based on the philosophy of Creation through Monetisation, is aimed at tapping private sector investment for new infrastructure creation. This is necessary for creating employment opportunities, thereby enabling high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare.<\/p>\n<div class=\"spot_bg_new\">\n<div class=\"sopt_de_new\"><span class=\"heading_n\">Imperatives for Core Asset Monetisation<\/span><\/div>\n<div class=\"sopt_de_new2\">\n<p>The framework for monetisation of core asset monetisation has three key imperatives.<\/p>\n<ul>\n<li>Monetization of 'Rights' not 'Ownership', Assets handed back to the government at the end of transaction life<\/li>\n<li>Brownfield de-risked assets, stable revenue streams<\/li>\n<li>Structured partnerships under defined contractual frameworks with strict KPIs &amp; performance standards<\/li>\n<\/ul>\n<p>This includes selection of de-risked and brownfield assets with stable revenue generation profile with the overall transaction structured around revenue rights. The primary ownership of the assets under these structures, hence, continues to be with the Government with the framework envisaging hand back of assets to the public authority at the end of transaction life.<\/p>\n<div class=\"spot_bg_new\">\n<div class=\"sopt_de_new\"><span class=\"heading_n\">Estimated Potential<\/span><\/div>\n<div class=\"sopt_de_new2\">\n<p><a href=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2021\/09\/NMP3.jpg?ssl=1\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-4654 size-full aligncenter\" src=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2021\/09\/NMP3.jpg?resize=605%2C380&#038;ssl=1\" alt=\"\" width=\"605\" height=\"380\" data-wp-pid=\"4654\" srcset=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2021\/09\/NMP3.jpg?w=605&amp;ssl=1 605w, https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2021\/09\/NMP3.jpg?resize=300%2C188&amp;ssl=1 300w\" sizes=\"auto, (max-width: 605px) 100vw, 605px\" \/><\/a>The aggregate asset pipeline under NMP over the four-year period, FY 2022-2025, is indicatively valued at Rs 6.0 lakh crore. The estimated value corresponds to ~14% of the proposed outlay for Centre under NIP (Rs 43 lakh crore).<\/p>\n<p>The top 5 sectors (by estimated value) capture ~83% of the aggregate pipeline value. These top 5 sectors include: Roads (27%) followed by Railways (25%), Power (15%), oil &amp; gas pipelines (8%) and Telecom (6%).<\/p>\n<p>In terms of annual phasing by value, 15% of assets with an indicative value of Rs 0.88 lakh crore are envisaged to be rolled out in the current financial year (FY 2021-22). However, the aggregate as well as year on year value under NMP is only an indicative value with the actual realization for public assets depending on the timing, transaction structuring, investor interest etc.<\/p>\n<h3><strong>What is monetisation?<\/strong><\/h3>\n<p>In a monetisation transaction, the government is basically transferring revenue rights to private parties for a specified transaction period in return for upfront money, a revenue share, and commitment of investments in the assets. Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), for instance, are the key structures used to monetise assets in the roads and power sectors. These are also listed on stock exchanges, providing investors liquidity through secondary markets as well. While these are a structured financing vehicle, other monetisation models on PPP (Public Private Partnership) basis include: Operate Maintain Transfer (OMT), Toll Operate Transfer (TOT), and Operations, Maintenance &amp; Development (OMD). OMT and TOT have been used in highways sector while OMD is being deployed in case of airports.<\/p>\n<div class=\"ie-int-campign-ad\">\n<div id=\"gpt_ad_IE_ROS_INT_CAMP_DESK\" class=\"\" data-google-query-id=\"COz155LC8vICFeKJcAod1C0M2A\">\n<div id=\"andbeyond3001\" data-google-query-id=\"COjTssXD8vICFRWBcAodkQwMSw\">\n<div id=\"google_ads_iframe_\/21796214895\/324113-300-250-1_0__container__\">Finance Minister <a class=\"\" href=\"https:\/\/indianexpress.com\/about\/nirmala-sitharaman\/\">Nirmala Sitharaman<\/a>\u00a0said: \u201cThere is no land here, this entire (NMP) is talking about brownfield projects where investments have already been made, where there is a completed asset which is either languishing or it is not fully monetised or is under-utilised. So by bringing in private participation in this you will be able to monetise it better and ensure further investment in infrastructure building.\u201d<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Source: https:\/\/pib.gov.in\/PressReleseDetail.aspx?PRID=1748297\u00a0 &amp; https:\/\/www.india.gov.in\/spotlight\/national-monetisation-pipeline-nmp<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>The government has unveiled a four-year National Monetisation Pipeline worth an estimated Rs 6 lakh crore. What is the government&#8217;s plan, which are the assets listed, and will there be challenges?<\/p>\n","protected":false},"author":1,"featured_media":4655,"comment_status":"open","ping_status":"closed","template":"","tags":[35,278,1015],"news-category":[29,1014],"class_list":["post-4652","news","type-news","status-publish","has-post-thumbnail","hentry","tag-economy","tag-finance-ministry","tag-nmp","news-category-economy","news-category-national-monetisation-pipeline"],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/news\/4652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/news"}],"about":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/types\/news"}],"author":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4652"}],"version-history":[{"count":1,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/news\/4652\/revisions"}],"predecessor-version":[{"id":4656,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/news\/4652\/revisions\/4656"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/media\/4655"}],"wp:attachment":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4652"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4652"},{"taxonomy":"news-category","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fnews-category&post=4652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}