Rs 1.3Tn transactions in FY23 via Natl Monetisation Pipeline
ECONOMY & POLICY

Rs 1.3Tn transactions in FY23 via Natl Monetisation Pipeline

During the fiscal years 2021-22 and 2022-23, transactions worth approximately Rs 97,000 crore and Rs 1.3 lakh crore were successfully concluded respectively. These transactions were a part of the National Monetisation Pipeline (NMP), which was launched in August 2021 to expedite infrastructure development across the nation. The NMP envisions an aggregate monetisation potential of Rs 6.0 lakh crore over a four-year period from FY 2022 to FY 2025.

The NMP's asset monetisation process is aimed at creating a streamlined approach either through structured public-private partnership (PPP) frameworks or capital market-based instruments. The detailed structuring of these transactions adheres to existing guidelines and regulations, subject to appraisal and approval by competent authorities.

The top sectors identified for monetisation, accounting for 83% of the aggregate pipeline value, include roads (27%), railways (25%), power (15%), oil & gas pipelines (8%), and telecom (6%).

Underlying the NMP's framework are key principles such as monetisation of "Rights" rather than "Ownership," with assets returning to government control after the transaction life cycle. The approach centres on brownfield derisked assets with stable revenue streams, establishing structured partnerships within defined contractual frameworks and performance standards for each project.

Importantly, the core ownership of the assets remains with the government throughout these structures, with assets eventually reverting back to public authorities at the transaction's culmination. This ensures the continuity of essential infrastructure while harnessing private sector involvement to expedite its development.

During the fiscal years 2021-22 and 2022-23, transactions worth approximately Rs 97,000 crore and Rs 1.3 lakh crore were successfully concluded respectively. These transactions were a part of the National Monetisation Pipeline (NMP), which was launched in August 2021 to expedite infrastructure development across the nation. The NMP envisions an aggregate monetisation potential of Rs 6.0 lakh crore over a four-year period from FY 2022 to FY 2025.The NMP's asset monetisation process is aimed at creating a streamlined approach either through structured public-private partnership (PPP) frameworks or capital market-based instruments. The detailed structuring of these transactions adheres to existing guidelines and regulations, subject to appraisal and approval by competent authorities.The top sectors identified for monetisation, accounting for 83% of the aggregate pipeline value, include roads (27%), railways (25%), power (15%), oil & gas pipelines (8%), and telecom (6%).Underlying the NMP's framework are key principles such as monetisation of Rights rather than Ownership, with assets returning to government control after the transaction life cycle. The approach centres on brownfield derisked assets with stable revenue streams, establishing structured partnerships within defined contractual frameworks and performance standards for each project.Importantly, the core ownership of the assets remains with the government throughout these structures, with assets eventually reverting back to public authorities at the transaction's culmination. This ensures the continuity of essential infrastructure while harnessing private sector involvement to expedite its development.

Next Story
Infrastructure Urban

Implementation Status of Jal Jeevan Mission

Since August 2019 the Government has implemented Jal Jeevan Mission to provide assured potable water through household tap connections in rural India. At the start of the mission only 32.3 million (mn) rural households, representing 16.7 per cent, were reported to have tap water connections. States and union territories have reported that 125.8 mn additional rural households have since been provided with tap connections. As a result, of about 193.6 mn rural households roughly 158.2 mn, or 81.71 per cent, are reported to have tap water supply at home.\n\nThe State, district and village level st..

Next Story
Infrastructure Urban

Jal Jeevan Mission Reaches Eighty One Per Cent Rural Coverage

The Government reported substantial progress under the Jal Jeevan Mission, launched in August 2019 to provide tap water to every rural household. At launch only 32.3 million (mn) rural households had tap connections and states and Union territories reported provision of 125.8 mn additional households by March 2026. Consequently, out of about 193.6 mn rural households around 158.2 mn, or 81.71 per cent, are reported to have tap water at home. The Finance Minister announced extension of the mission until 2028 in the 2025-26 budget speech. The Swachh Bharat Mission Grameen, launched in October 20..

Next Story
Infrastructure Urban

Empowering Local Governance for Sustainable Rural Water Supply

The Ministry of Jal Shakti has aligned the Jal Jeevan Mission (JJM) with the 73rd Amendment to strengthen village level planning and community ownership of water supply. Gram Panchayats, village water and sanitation committees and Pani Samitis are to plan, implement, manage and maintain piped water systems, with gram sabha processes formalising handover and oversight. Implementation support agencies including non government organisations, community based organisations and self help groups have been empanelled to train local committees and promote women participation. Under JJM, the department ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement