''Asset Monetisation To Enhance Capex, Revive Credit Flow'': Amitabh Kant To NDTV

The objective of the National Monetization Pipeline (NMP) is to enhance capex (capital expenditure) spending and build top-class infrastructure in the country, Amitabh Kant, Chief Executive Officer (CEO), NITI Aayog, told NDTV. 'This is a plan spread over four years and the objective is to have a multiplier effect on growth and employment, ensuring that the proceeds from monetising existing assets get into new infrastructure creation, and also lead to the revival of credit flow,' said Mr Kant in an exclusive interview to NDTV. 

The comments from the industry leader come two days after Finance Minister Nirmala Sitharaman unveiled the Rs 6 lakh crore National Monetisation Pipeline, under which the government will monetise assets worth Rs 1.6 lakh crore from the roads sector, Rs 1.5 lakh crore from the railway sector, and Rs 79,000 crore from the power sector.

Under asset monetisation, the ownership of the asset remains with the government. It is a structured contractual partnership with key performance indicators or performance standards, explains Mr Kant. As part of the plan, the government will only monetise under-utilised assets and the brownfield assets will be monetised by bringing in private participation.

'Assets have been identified across key central government ministries and public-sector enterprises...there are different models of monetisation which will be used for the purpose,' said the CEO of the government's think tank. 20 asset classes are involved in the national monetisation pipeline.

When the public sector enterprises such as NHAI, NTPC, Power Grid, GAIL monetise their assets, the resources will be used by these entities for the creation of further infrastructure in that particular sector, according to Mr Kant.

For the sector-specific outlook of India's mega monetisation plan, Mr Kant remains confident of the railways becoming a key driver of growth with enhanced capex spending, claiming that 'it can give a huge fillip to India's economic growth'.

'With asset monetisation, railway stations can be creators of new economic activity...better run trains can compete with government trains...rail stadiums can be used for sports activities,' said Mr Kant.

The pipeline of government's assets is Rs 6 lakh crore - about 14 per cent of the centre's outlay under the National Infrastructure Pipeline (NIP). The ministries of railways, roads, transport & highways, power, civil aviation, pipeline & natural gas, shipping ports & waterways, food & public distribution, telecommunications, mining, housing and urban affairs, coal, will be a part of the national monetisation pipeline.