{"id":123998,"date":"2022-10-26T13:45:10","date_gmt":"2022-10-26T08:15:10","guid":{"rendered":"https:\/\/www.mapsofindia.com\/my-india\/?p=123998"},"modified":"2022-10-26T03:05:42","modified_gmt":"2022-10-25T21:35:42","slug":"national-monetisation-pipeline-nmp-meaning-features-and-issues","status":"publish","type":"post","link":"https:\/\/www.mapsofindia.com\/my-india\/government\/national-monetisation-pipeline-nmp-meaning-features-and-issues","title":{"rendered":"National Monetisation Pipeline (NMP): Meaning, Features And Issues"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">There has been the creation of the National Monetisation Pipeline by the Indian government. It is estimated that the NMP may be able to monetise a total of Rs 6 lakh crores through Central Government core assets over four years, starting in FY 2022 and ending in FY 2025.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The strategy is consistent with the Prime Minister&#8217;s planned divestment policy, which states that the government would keep a presence in only a few designated areas while outsourcing the remainder to the private sector.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Salient Features Of NMP<\/span><\/strong><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">It intends to unleash worth in brownfield projects by involving the private sector, giving them income rights rather than ownership of the assets, and using the revenues earned to build infrastructure across the country.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The NMP was introduced to establish a precise mechanism for monetisation and to present potential investors with a ready list of assets to pique their interest.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The monetisation of operational public infrastructure assets has been designated an effective strategy for financing sustainable infrastructure in the Union Budget 2021-22.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Only properties of national government agencies and Central Public Sector Enterprises (CPSEs) in the infrastructure sectors are currently covered.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The government has emphasised that these brownfield facilities have been &#8220;de-risked&#8221; from execution hazards and should thus stimulate private investment.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The remaining forthcoming industries include mining, aviation, telecom, ports, natural gas, petroleum product pipelines, warehouses, and stadiums, accounting for more than 66% of the total anticipated value of the assets to be monetised.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Regarding yearly scheduling by value, 15% of assets with an estimated value of Rs 0.88 lakh crore are expected to be rolled out in the current fiscal year.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The NMP will operate concurrently with the Rs 100 billion National Infrastructure Pipeline (NIP), launched in December 2019.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The expected amount to be raised by monetisation is around 14% of the budgeted outlay for the Centre under NIP of Rs 43 lakh crore.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">NIP will allow for a more accurate forecast of infrastructure projects that will create employment, improve living conditions, and give fair access to facilities for all, making growth more inclusive. NIP initiatives involve both economic and social infrastructure.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Other infrastructural expansion initiatives include the Scheme of Financial Assistance to States for Capital Expenditure, industrial corridors, etc.<\/span><\/li>\n<\/ul>\n<p><strong><span data-preserver-spaces=\"true\">Associated Issues<\/span><\/strong><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">A lack of recognisable revenue streams in diverse assets.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The delayed rate of privatisation of state-owned enterprises such as Air India and BPCL.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Furthermore, the lacklustre bids in the newly announced PPP effort in railways show that gaining private investors&#8217; interest is complex.<\/span><\/li>\n<\/ul>\n<p><strong><span data-preserver-spaces=\"true\">Asset-Specific Difficulties<\/span><\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li class=\"ql-indent-1\"><span data-preserver-spaces=\"true\">In gas and petroleum pipeline infrastructures, capacity is underutilised.<\/span><\/li>\n<li class=\"ql-indent-1\"><span data-preserver-spaces=\"true\">Tariffs in the power industry are regulated.<\/span><\/li>\n<li class=\"ql-indent-1\"><span data-preserver-spaces=\"true\">Investors are not interested in national highways with fewer than four lanes.<\/span><\/li>\n<li class=\"ql-indent-1\"><span data-preserver-spaces=\"true\">The Konkan Railway, for example, has several stakeholders, including state governments, that possess a part in the company.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">While the government has attempted to address numerous difficulties arising from infrastructure development in the NMP model, implementing the plan remains critical to its success.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Dispute Resolution System<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">\u00a0An effective dispute-resolution mechanism is also required.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Multi-Stakeholder Strategy<\/span><\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li class=\"ql-indent-1\"><span data-preserver-spaces=\"true\">The infrastructure expansion plan&#8217;s effectiveness depends on other stakeholders&#8217; participation.<\/span><\/li>\n<li class=\"ql-indent-1\"><span data-preserver-spaces=\"true\">State governments and their public-sector companies, as well as the private sector, are among them.<\/span><\/li>\n<li class=\"ql-indent-1\"><span data-preserver-spaces=\"true\">For this purpose, the Fifteenth Finance Commission has proposed the formation of a High-Powered Intergovernmental Group that will examine the financial responsibility laws of the Centre and the States.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>There has been the creation of the National Monetisation Pipeline by the Indian government. It is estimated that the NMP may be able to monetise a total of Rs 6 lakh crores through Central Government core assets over four years, starting in FY 2022 and ending in FY 2025. The strategy is consistent with the [&hellip;]<\/p>\n","protected":false},"author":21834,"featured_media":126008,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12420,4,12206,11315,12272,12275,12329,12360,12205],"tags":[],"class_list":{"0":"post-123998","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"category-government","9":"category-incredible-india","10":"category-india","11":"category-investments","12":"category-knowledge","13":"category-management","14":"category-policy","15":"category-schemes"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/123998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/users\/21834"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/comments?post=123998"}],"version-history":[{"count":3,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/123998\/revisions"}],"predecessor-version":[{"id":126003,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/123998\/revisions\/126003"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media\/126008"}],"wp:attachment":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media?parent=123998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/categories?post=123998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/tags?post=123998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}