NTPC, AAI, NHAI's infrastructure assets identified for monetisation: Govt
The government has planned a Rs 6 lakh crore pipeline of assets that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways over a four-year period.
- Dec 13, 2021,
- Updated Dec 13, 2021 2:34 PM IST
The central government on Monday said that under the recently-introduced National Monetisation Pipeline, Public Sector Undertakings (PSUs), including, NTPC Ltd, National Highways Authority of India (NHAI), Airports Authority of India (AAI), have been identified for monetization in the four-year plan.
In a written reply in the Lok Sabha, the Minister State for Finance Bhagwat Karad stated on Thursday that under the NMP, certain core infrastructure assets of selected PSUs under respective ministeries and departments. The PSUs whose infrastructure assets have been identified for monetisation include NHAI, AAI, PGCIL, NTPC, NHPC, NLC India. FCI, GAIL, IOCL, HPCL, BSNL, MTNL, BBNL, etc.
"This has been done so as to unlock value from built infrastructure for accelerated new infrastructure creation and to bring efficiencies in infrastructure operation and maintenance for a multiplier impact on the economy," the minister further added.
Earlier in August, Finance Minister Nirmala Sitharaman had launched the National Monetisation Pipeline that includes the Centre's four-year plan to monetise its brownfield infrastructure assets. The government has planned a Rs 6 lakh crore pipeline of assets that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways over a four-year period, from Financial Year 2022 to Financial Year 2025.
Under the NMP, four broad strategic sectors have been delineated based on the criteria of national security, energy security, critical infrastructure, provision of financial services, and availability of important minerals, the government had said. These sectors are:
(i) Atomic Energy, Space, and Defence;
(ii) Transport and Telecommunication;
(iii) Power, Petroleum, Coal and other minerals; and
(iv) Banking, Insurance, and Financial Services.
The Centre has further clarified that in the aforementioned sectors, bare minimum presence of the existing public sector commercial enterprises at holding company level will be retained under government control. The remaining enterprises in a strategic sector, will be considered for privatisation or merger/subsidiarization with another PSE or for closure.
PSEs in non-strategic sectors shall be considered for privatisation, where feasible, otherwise such enterprises shall be considered for closure, it added.
"The new policy intends to minimise the presence of Government in the PSEs so as to make available newer investment opportunities for private sector and allow infusion of private capital, technology, innovation and best management practices," Karad stated in his reply.
The central government on Monday said that under the recently-introduced National Monetisation Pipeline, Public Sector Undertakings (PSUs), including, NTPC Ltd, National Highways Authority of India (NHAI), Airports Authority of India (AAI), have been identified for monetization in the four-year plan.
In a written reply in the Lok Sabha, the Minister State for Finance Bhagwat Karad stated on Thursday that under the NMP, certain core infrastructure assets of selected PSUs under respective ministeries and departments. The PSUs whose infrastructure assets have been identified for monetisation include NHAI, AAI, PGCIL, NTPC, NHPC, NLC India. FCI, GAIL, IOCL, HPCL, BSNL, MTNL, BBNL, etc.
"This has been done so as to unlock value from built infrastructure for accelerated new infrastructure creation and to bring efficiencies in infrastructure operation and maintenance for a multiplier impact on the economy," the minister further added.
Earlier in August, Finance Minister Nirmala Sitharaman had launched the National Monetisation Pipeline that includes the Centre's four-year plan to monetise its brownfield infrastructure assets. The government has planned a Rs 6 lakh crore pipeline of assets that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways over a four-year period, from Financial Year 2022 to Financial Year 2025.
Under the NMP, four broad strategic sectors have been delineated based on the criteria of national security, energy security, critical infrastructure, provision of financial services, and availability of important minerals, the government had said. These sectors are:
(i) Atomic Energy, Space, and Defence;
(ii) Transport and Telecommunication;
(iii) Power, Petroleum, Coal and other minerals; and
(iv) Banking, Insurance, and Financial Services.
The Centre has further clarified that in the aforementioned sectors, bare minimum presence of the existing public sector commercial enterprises at holding company level will be retained under government control. The remaining enterprises in a strategic sector, will be considered for privatisation or merger/subsidiarization with another PSE or for closure.
PSEs in non-strategic sectors shall be considered for privatisation, where feasible, otherwise such enterprises shall be considered for closure, it added.
"The new policy intends to minimise the presence of Government in the PSEs so as to make available newer investment opportunities for private sector and allow infusion of private capital, technology, innovation and best management practices," Karad stated in his reply.