Context:
NMP has monetised Rs 3.85 lakh crore of assets in 3 years
National Monetisation Pipeline:
- Aim – To unlock value in brownfield projects by engaging the private sector
- Announced in – Union budget 2021-22, for monetization of assets worth an estimated Rs 6 lakh crore
- Aims for transferring to them revenue rights and not ownership in the projects, and using the funds generated for infrastructure creation across the country.
- The NMP will run co-terminus with the National Infrastructure Pipeline (NIP) announced in December 2019.
- NIP includes economic and social infrastructure projects.
Monetisation:
- Government transferring revenue rights to private parties for a specified transaction period in return for upfront money, a revenue share, and commitment of investments in the assets.
- Real Estate Investment Trusts (Reits) and Infrastructure Investment Trusts (Invits) are the key structures used to monetise assets in the roads and power sectors.
- These are also listed on stock exchanges, providing investors liquidity through secondary markets as well.
- Other monetisation models on PPP (Public Private Partnership) basis –
- Operate Maintain Transfer (OMT)
- Toll Operate Transfer (TOT)
- Operations, Maintenance & Development (OMD)
- Greenfield and Brownfield Investment
- Greenfield Project – Investment in a manufacturing, office, or other physical company-related structure or group of structures in an area where no previous facilities exist.
- Brownfield investment – The projects which are modified or upgraded are called brownfield projects.
Source: PIB
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)
