Potential for ₹5-6 trillion assets to be monetised in the near term at central level
ECONOMY & POLICY

Potential for ₹5-6 trillion assets to be monetised in the near term at central level

In the National Infrastructure Pipeline (NIP), India is looking at an investment of Rs 111 trillion over a five-to-six-years period, which may get stretched with the pandemic coming in.

The sectoral outlay in the NIP – roads, urban housing, power (including the RE space) and railways – all these contribute about ~70 per cent of the infrastructure pipeline. “Of this Rs 111 trillion, investments will be coming in from the private sector, the state government, and the Central Government. Yet, there is a shortfall or financing gap of about 15-17 per cent of the Capex requirement,” highlights Jagannarayan Padmanabhan, Director and Practice Leader-Transport & Logistics, CRISIL Infrastructure Advisory. “And that’s where the scope for asset monetisation will be coming in. Hence, it is an important tool to bridge this whole infrastructure pipeline funding gap,” he exclaims.

National monetisation pipeline

There is a huge pipeline and inventory of assets under the central sector. (See box on ‘Sector-wise Quantum of Assets that can be Monetised’). This itself is a significant path there.

Click here to know more.

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In the National Infrastructure Pipeline (NIP), India is looking at an investment of Rs 111 trillion over a five-to-six-years period, which may get stretched with the pandemic coming in. The sectoral outlay in the NIP – roads, urban housing, power (including the RE space) and railways – all these contribute about ~70 per cent of the infrastructure pipeline. “Of this Rs 111 trillion, investments will be coming in from the private sector, the state government, and the Central Government. Yet, there is a shortfall or financing gap of about 15-17 per cent of the Capex requirement,” highlights Jagannarayan Padmanabhan, Director and Practice Leader-Transport & Logistics, CRISIL Infrastructure Advisory. “And that’s where the scope for asset monetisation will be coming in. Hence, it is an important tool to bridge this whole infrastructure pipeline funding gap,” he exclaims. National monetisation pipeline There is a huge pipeline and inventory of assets under the central sector. (See box on ‘Sector-wise Quantum of Assets that can be Monetised’). This itself is a significant path there.Click here to know more.

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