Context:
The Union Finance Minister launched National Monetisation Pipeline (NMP) 2.0, aiming to mobilize ₹16.72 lakh crore by 2030 through monetisation of public infrastructure assets.
Key Highlights:
Overall Target
• NMP 2.0 targets ₹16.72 lakh crore asset monetisation by 2030.
Background of NMP 1.0
• NMP 1.0 (FY22–FY25) targeted ₹6 lakh crore.
• Achieved 89% of its target, attracting institutional investors.
Major Sectors for Monetisation
• Highways
• Railways
• Ports
• Power sector infrastructure.
Infrastructure Assets Identified
• 21,300 km of highways.
• 15 Multi-Modal Logistics Parks.
• 6 ropeways.
• Expected to generate ₹4.42 lakh crore.
Methods of Asset Monetisation
• Transfer of asset rights.
• Strategic commercial auctions.
• Securitisation of revenue streams.
• Divestment of infrastructure assets.
Role of Institutional Investors
• Pension funds and sovereign wealth funds are expected to invest heavily.
Public–Private Partnerships (PPP)
• PPP model used to:
• Improve efficiency of infrastructure management.
• Attract private capital.
• Enhance service quality.
Relevant Prelims Points:
- National Monetisation Pipeline (NMP):
• Initiative launched in 2021 to unlock value from brownfield infrastructure assets. - Infrastructure Investment Trust (InvIT):
• Investment vehicle enabling public participation in infrastructure assets. - Public–Private Partnership (PPP):
• Collaboration between government and private sector for infrastructure development. - Brownfield Assets:
• Existing operational infrastructure assets that can generate revenue.
Relevant Mains Points:
- Need for Asset Monetisation
• India requires massive investment to build modern infrastructure networks.
• Monetisation enables recycling of capital from existing assets. - Economic Benefits
• Improves infrastructure quality and connectivity.
• Attracts long-term institutional investment.
• Supports Viksit Bharat infrastructure goals. - Challenges
• Regulatory and contractual risks in PPP models.
• Concerns about valuation transparency and public accountability.
• Need to ensure public interest in essential infrastructure sectors. - Way Forward
• Strengthen regulatory frameworks for PPP contracts.
• Improve transparency in asset valuation and bidding processes.
• Expand domestic long-term infrastructure financing mechanisms.
UPSC Relevance:
• GS Paper III: Infrastructure development, economic reforms.
• GS Paper II: Governance reforms in public asset management.
• Prelims: NMP, InvIT, PPP.