Context:
Total Asset Monetization Program of Ministry of Road Transport & Highways (MoRTH) crossed Rs.1 Lakh Crore
Monetization Program of MoRTH:
- Monetisation under 3 different modes –
- Toll-operate-transfer (TOT) – Right of collection of fees for selected operational National Highway projects constructed through public funding is assigned to a concessionaire against upfront payment of a lump-sum amount to NHAI.
- Infrastructure Investment Trust (InvITs) – InvITs are investment scheme like mutual funds that allow investment from individuals and institutional investors in infrastructure projects
- Securitisation – In this, certain types of assets are pooled so that they can be repackaged into interest-bearing securities.
Asset Monetisation (AM):
- Asset Monetisation – Process of creating new sources of revenue for the government by unlocking the economic value of unutilised or underutilised public assets by transferring them for a limited period to a private sector entity.
- 1st suggested by – Vijay Kelkar Committee in 2012
- Also known as – ‘Asset or capital recycling’
- Objectives –
- Unlocks value from public investment in Infrastructure.
- Taps private sector efficiencies in operations and management of infrastructure.
- Comparison with Privatisation – In Asset Monetisation, the ownership remains with the government/ public authority.
- Initiative – National Monetisation Pipeline (NMP) (FY 2022-2025)
Source: Economic Times
Previous Year Question
Atal innovation mission is set up under the:
[UPSC Civil Service Exam – 2019 Prelims]
(a) Department of science of technology
(b) Ministry of labour and employment
(c) NITI Ayog
(d) Ministry of skill development and entrepreneurship
Answer: (c)
