National Monetisation Pipeline Yojana UPSC Pdf 2021 | NMP, Objectives

National Monetisation Pipeline Yojana UPSC Pdf 2021 | NMP, Objectives – National monetisation pipeline: Central Government to NITI Aayog for Asset Monetaigen Was given the responsibility of preparing a report. R has prepared a list of properties where asset monetisation is likely. These are sectors. Railways, Road Transport and Highways, Shipping, Telecom, Power, Civil Aviation, Petroleum and Natural gas, youth affairs and sports.

You have this information that the Central Government was selling to loss making public companies. But the government now has basic sector projects for its earnings, such as Large private sectors to rail, road, airport, gas pipeline, stadium, power, warehouse Give it to the players for some time and in return they will be charged a hefty ‘fare’.

You can say that these big projects are ‘rented‘ by the government. It may be noted that according to the Central Government, private companies own these projects in the entire process will not be transferred to. After a few years, the central government is responsible for the operation of these projects. Then Central Government Will Take Back All Companies and properties Back Form Private Players . How long will this time be between the Centre and private companies Will decide on the agreement.

National Monetisation Pipeline Yojana UPSC Pdf 2021 | NMP, Objectives

Let’s now know this program in detail.

Key Highlights 

Misison Name  National Monetisation Pipeline
Launched By  Finance Minister Of India
Prime Minister  Narendra Modi
Launch Date  24 August 2021
Main objective  To Generate Revenue From Underutilised Government Properties .
Official Website
Download Pdf  Click Here 

What is National monetisation pipeline ?

  • The National Monetisation Pipeline (NMP) will cover a wide array of sectors ranging from road and railway assets, and airports to power transmission lines and gas pipelines.
  • The government will only monetise under-utilised assets and the ownership will remain with the centre.
  • Many public sector assets are sub-optimally utilized and could be appropriately monetized by involving private sector (leasing or selling) to create better value from the assets.

Key Features

  • The government will only monetise under-utilised assets and the ownership will remain with the centre.
  • The private participants will have to hand over the assets to the government after a pre-determined period of time.
  • The money obtained through the monetization exercise will be channelised into infrastructure building.
  • The entire exercise “will generate greater value and unlock resources for economy.
  • Infra assets worth ₹ 6 lakh crore will be monetised across the rail, road and power sectors over 4 years and “projects have been identified to monetise the assets.
  • Most of the asset monetisation will take place either through the InvIT mode or public-private partnerships.

What Sectors Are Monetised Under National Monetization Pipeline

The government will monetise assets From Different Sectors .

  • The government will monetise assets worth ₹ 1.6 lakh crore from the roads sector
  • ₹ 1.5 lakh crore from the railway sector
  • ₹ 79,000 crore from the power sector.
  • The centre will also monetise ₹ 20,800 crore from airports
  • ₹ 13,000 crore from ports
  • ₹ 35,000 crore from telecom
  • ₹ 11,500 crore from stadiums
  • ₹ 45,200 crore from power transmission sectors.
Sector Monetisation Value 
Roards Sector ₹ 1.6 lakh crore from the roads sector
Railway Sector  ₹ 1.5 lakh crore from the railway sector
Power Sector  ₹ 79,000 crore from the power sector.
Aiports  ₹ 20,800 crore from airports
Ports  ₹ 13,000 crore from Ports
Power Transmission Sector  ₹ 45,200 crore from power transmission sectors.
Stadiums  Rs 11500 Sector

Which Ministeries Are Part Of National Monetisation Pipeline ?

  • The ministries of roads, transport & highways, railways, power, pipeline & natural gas, civil aviation, shipping ports & waterways, telecommunications, food & public distribution, mining, coal, housing and urban affairs will be a part of the National Monetisation Pipeline.

Merits of the NMP

Resource Efficiency
  • It leads to optimum utilisation of government assets.
Fiscal Prudence
  • The revenue accrued by leasing out these assets to private sector will help fund new capital expenditure without pressuring government finances.
Streamlining the Process
  • Monetisation of assets is not new, but the government has finally organised it in baskets, set targets, identified impediments, and put in place a framework.
Mobilising Private Capital
  • Since the assets are de-risked as it is brownfield projects, it will help in mobilising private capital (both domestic & foreign).
  • Global investors have revealed that they are keen to participate in projects to be monetised through a transparent/competitive bidding process.
Less Resistance
  • The plan involves leasing to private sector without transferring ownership or resorting to fire sale of assets.
  • Therefore, it is going to face less resistance from the opposition.
Cooperative Federalism
  • To encourage states to pursue monetisation, the Central government has already set aside Rs 5,000 crore as incentive.
  • If a state government divests its stake in a PSU, the Centre will provide a 100 per cent matching value of the divestment to the state.
  • If a state lists a public sector undertaking in the stock markets, the Central government will give it 50 per cent of that amount raised through listing.
  • If a state monetises an asset, it will receive 33 of the amount raised from monetisation from the Centre.
Promoting Public-Private Partnership
  • The end objective of NMP is to enable ‘Infrastructure Creation through Monetisation’ wherein the public and private sector collaborate, each excelling in their core areas of competence, so as to deliver socio-economic growth and quality of life to the country’s citizens.




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