The Youth Congress Shivamogga District Unit held a protest Thursday against the central government’s National Monetization Pipeline (NMP) in Shivamogga, Karnataka.
Separately, Indian Youth Congress workers staged a protest in front of Shastri Bhawan in Delhi against the decision of the BJP-led government to divest several state assets through the NMP.
The National Monetization Pipeline, launched by Finance Minister Nirmala Sitharaman on August 23, aims to monetize Rs 6 lakh crore of brownfield infrastructure assets over a four-year period starting in fiscal 2022.
National monetization pipeline “a huge tragedy”: Rahul Gandhi
Congress leader Rahul Gandhi and West Bengal Chief Minister Mamata Banerjee, among others, spoke out against the central government’s divestment decision. Gandhi on Tuesday criticized the Centre’s NPM, calling it a “huge tragedy”. The Wayanad MP accused Prime Minister Narendra Modi’s government of mismanaging the country’s economy and said the NMP aimed to create monopolies in certain sectors.
On Monday, Finance Minister Nirmala Sitharaman announced the launch of the national monetization pipeline. Over a four-year period from FY2022 to FY2025, NMP estimated total monetization potential of Rs 6 lakh crore through core central government assets. The government’s four-year strategy involves the monetization of brownfield infrastructure assets, including roads and railways, as well as power transmission and generation and mining, as outlined in the national pipeline plan. monetization.
NEP a crucial source for long-term infra spending: Govt
Finance Minister Nirmala Sitharaman informed that through the NEP a mandatory return will be enforced and the government retains control of the assets. After a specific period of time, private sector partners will be required to return government assets.
The government would monetize the assets through private participation, and any resources raised through monetization will be used for additional infrastructure investments, according to the plan. Sitharaman said monetizing assets will unlock resources and lead to unlocking value.
The Union budget for the year 2021-2022 identified the monetization of public infrastructure assets in operation as a crucial source of long-term infrastructure financing. The budget called for the preparation of a “national monetization pipeline” of potential brownfield infrastructure assets.
The NPM report was created by NITI Aayog in coordination with the ministries responsible for infrastructure. Over the next four years, infrastructure assets worth Rs. 6 lakh crore will be monetized in the rail, road and power sectors, with projects already identified.
The government plans to sell assets worth Rs. 1.6 lakh crore of roads, Rs. 1.5 lakh crore of railways, and Rs. 79,000 crore of power. Airports will bring in Rs. 20,800 crore, ports will bring in Rs. 13,000 crore, telecommunications will bring in Rs. 35,000 crore, stadiums will bring in Rs. 11,500 crore and electricity transmission will bring in Rs. 45,200 crore. Most of the monetization of assets will be done either through the InvIT mode or through public-private partnerships.
The National Monetization Pipeline comprises a 4-year pipeline of central government brownfield infrastructure assets.
– NITI Aayog (@NITIAayog) 23 Aug 2021
Finance Minister Nirmala Sitharaman added that the final objective of this initiative is to enable the creation of infrastructure. This needs to be done through monetization with the collaboration of the public and private sectors and each excelling in their core areas of expertise. This should bring socio-economic growth and quality of life to the citizens of the country.