What The FAQ: What is the National Monetisation Pipeline that FM Nirmala Sitharaman launched?

The National Monetisation Pipeline (NMP), which will pave the way for the government to sell its infrastructural assets over the next four years
Pic: Edex Live
Pic: Edex Live

On August 23, Finance Minister Nirmala Sitharaman is set to launch the National Monetisation Pipeline (NMP), which will pave the way for the government to sell its infrastructural assets over the next four years. Here's what you need to know about the NMP.

What is the National Monetisation Pipeline?
The NMP, which was announced in the Union Budget 2021-22, will not only provide transparency about the government's infrastructure assets to the investors, but it will also act as a roadmap as to how and when the government is willing to monetise an asset over the next four years.

What is asset monetisation all about?
It is a way to convert the government's infrastructure assets into monetary value. In this case, the government will monetise the contracts to build railways, roads, power grids, bridges and so on.

How will it benefit the government?
Monetising brownfield infrastructure assets means that the government can now raise money for infrastructure in an innovative manner, using an alternative method.

How much money are we talking about?
Earlier this month, Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM) said that infrastructure assets worth Rs 6 lakh crore will be monetised. Besides this, the Ministry of Road Transport and Highways has also announced that it will be raising Rs 30,000 crore over the next three years when its assets are monetised. 

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