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.

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