Lok Sabha Question No. 2498 (UNSTARRED), answered on 2022-12-21
Subject: National Monetization Pipeline
Ministry: PLANNING
Asked by: D. M. Kathir Anand

## GOVERNMENT OF INDIA MINISTRY OF PLANNING

## LOK SABHA

## UNSTARRED QUESTION NO. 2498

TO BE ANSWERED ON 21.12.2022

## NATIONAL MONETIZATION PIPELINE

## 2498. SHRI D.M. KATHIR ANAND:

Will the Minister of PLANNING be pleased to state:

- (a) whether the Government has launched the National Monetisation pipeline (NMP) in an effort to list out the Government's infrastructure assets to be sold;
- (b) if so, the details thereof including the income expected to be generated and the income actually generated during each of the last five years;
- (c) whether the Government has any plan to form an expert committee comprising of MPs from all political parties to formulate the norms and policies to execute NMP, if so, the details thereof and if not, the reasons therefor;
- (d) the steps taken by the Government to provide job security to those already working; and
- (e) the steps taken by the Government to provide job security as per the reservation system practised in the country to uphold social justice?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS

## (RAO INDERJIT SINGH)

- (a) No  Sir,  the  Government  has  launched  the  National  Monetisation  Pipeline  (NMP)  in August  2021  in  an  effort  to  unlock  value  from  public  infrastructure  investments  for enabling  accelerated  infrastructure  creation  and  bringing  efficiencies  in  infrastructure operation and maintenance for a multiplier impact on the economy.

- (b) The aggregate indicative value of the asset pipeline over the 4 year period from FY22 to FY25 under NMP is estimated at Rs 6.0 lakh crore. This indicative value refers to value expected to be realised by respective public sector asset owners through the monetisation process, either in form of accruals or by way of private sector investments. The NMP was launched in August 2021 and FY21-22 was the first year of its implementation. During FY 21-22,  transactions  with  an  aggregate  monetisation  value  of  about  Rs.  97,000  crores  in terms of accruals or private investments, were completed under the core asset monetisation programme.
- (c) No Sir, no such proposal for creation of an expert committee comprising of MPs from all political  parties  is  currently  under  consideration.  Creation  of  National  Monetisation Pipeline was undertaken based on consultations with the asset owning entities, concerned line  Ministries,  Departments  as  well  as  other  stakeholders.  Further,  at  the  transaction stage, respective asset owning entities undertake due - diligence and requisite stakeholder consultations  in  accordance  with  extant  guidelines  and  applicable  regulations.    Upon formulation, such proposals are also appraised and approved by competent authority as per the extant approved guidelines, policies and delegation of powers, as the case may be.
- (d) and (e)  Monetisation framework envisaged under NMP entails limited period contractual structures  by  way  of  Public  Private  Partnerships  or  capital  market  structures  with mandatory hand back of assets at the end of transaction life. Monetisation proceeds are envisaged to be deployed by CPSEs into new infrastructure creation leading to a multiplier impact  on  the  economy.  Various  project  specific  transaction  aspects  such  as  scope, investment, operation and maintenance of assets, manpower and concession period etc. are firmed  up  by concerned  project  sponsoring  authorities based  on  due  diligence  at transaction  preparation  stage  and  as  per  applicable  laws.  These  aspects  are  thereafter appraised and approved  by  competent authority as per applicable guidelines and regulations.

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