OUR BUREAU New Delhi, August 23 “Monetisation of core infra- structure assets does not mean selling the assets,” said Finance Minister Nirmala Sitharaman, launching the Na- tional Monetisation Pipeline (NMP) — the asset monetisa- tion mechanism of Central public sector entities — on Monday With the NMP, the govern- ment aims to generate 6-lakh crore between 2021-22 and 2024-25, to be used for creating new assets. For the current fiscal, the target is 88,000 crore. The NMP was announced in this year’s Budget. “Ownership of assets will re- main with the government and there will be a mandatory hand-back. Asset monetisa- tion will unlock resources and lead to value unlocking,” she added. Sitharaman explained that the new mechanism is based on the philosophy of creation through monetisa- tion and is aimed at tapping private sector investment for new infrastructure creation. The NMP will be co-ter- minus with the balance period under the National Infrastruc- ture Pipeline (NIP). The estim- ated value of 6-lakh crore cor- responds to 14 per cent of the proposed outlay for the Centre under the NIP (43-lakh crore). This includes more than 12 line ministries and more than 20 asset classes. The sectors in- cluded are roads, ports, air- ports, railways, warehousing, gas and product pipeline, power generation and trans- mission, mining, telecom, sta- dium, hospitality and housing. “This is necessary for creat- ing employment opportunit- ies, thereby enabling high eco- nomic growth and seamlessly integrating the rural and semi- urban areas for overall public welfare,” said Sitharaman adding the NMP has all the central assets. Three-pronged scheme She said States will also be en- couraged to monetise their as- sets. There is a three-point scheme for that — If a State gov- ernment is fully divesting its public sector enterprises with control, an equal amount of what it gets will be provided by the Centre; if a State PSU has been listed, then an amount equal to half the realised value will be provided; and in case of any other asset, 33 per cent of the value will be provided by the Centre. The Minister said 10,000 crore has been provided in the Budget for NMP. Rajiv Kumar, Deputy Chair- man of NITI Aayog, said that the strategic objective of the programme is to unlock the value of investments in brownfield public sector as- sets by tapping institutional and long-term patient capital, which can thereafter be lever- aged for further public investments. Amitabh Kant, Chief Execut- ive Ocer of NITI Aayog, said that each Ministry will have an annual target. Kant hoped that as there is huge liquidity, well structured assets will get bet- ter realisation. InvITs (Infra- structure Investment Trust) have given good result as have various new models in the road sector. As part of a multi-layer insti- tutional mechanism for over- all implementation and mon- itoring of the new mechanism, an Empowered Core Group of Secretaries on Asset Monetization (CGAM) under the chairmanship of the Cabinet Secretary has been constituted. The assets and transactions identified under the NMP are expected to be rolled out through a range of instruments. These include direct contractual instru- ments such as public private partnership concessions and capital market instruments such as InvITs. The choice of in- strument will be determined by the sector, the nature of as- set, the timing of the transac- tion (including market consid- erations), the target investor profile and the level of opera- tional/investment control en- visaged to be retained by the asset owner, etc. Opposition unhappy Opposition parties, not con- vinced with the NMP, said the government is eyeing the country’s public wealth. “Modi should stop selling the wealth of the country. He is filling the exchequer by selling public properties. This govern- ment does not believe in con- structing anything, but is proving destructive for the country,” the Congress said in a statement. CPI(M) general secretary Sitaram Yechury said the Finance Minister has de- tailed the plan for the loot of national assets and people’s wealth. Also read p3 Not selling assets, unlocking value: FM Assets to be leased, ownership to remain with govt; to generate 6-lakh cr by FY25 Nirmala Sitharaman, Finance Minister, during the launch of the National Monetisation Pipeline along with Amitabh Kant, CEO of NITI Aayog, in New Delhi on Monday KAMAL NARANG