FinMin requests Niti Aayog to work out 5-year asset monetisation plan

With regard to Rs 111 lakh crore National Infrastructure Pipeline (NIP) for 2019-2025, the official said debt financing would be a challenge for this and the government is working to resolve it. The final report of the task force on the NIP for 2019-2025 presented to Finance Minister Nirmala Sitharaman in April suggested steps like deepening bond markets, setting up of development financial institutions and land monetisation to meet the funding needs.

The finance ministry has requested think tank Niti Aayog to work on a five-year asset monetisation road map as the Centre continues efforts to meet its funding needs, a top government official said on Thursday. Niti Aayog has laid out an asset monetisation plan worth about Rs 1 lakh crore for the current fiscal, Finance Ministry Additional Secretary K Rajaraman said at a virtual session organised by industry body FICCI.

"We are now requesting Niti Aayog to bring out a five-year asset monetisation pipeline so that there is indication to the market that what kind of assets would come to the market," he said.   The government has undertaken a number of reforms in attracting investment in infrastructure space, he added. With regard to Rs 111 lakh crore National Infrastructure Pipeline (NIP) for 2019-2025, the official said debt financing would be a challenge for this and the government is working to resolve it.

The final report of the task force on the NIP for 2019-2025 presented to Finance Minister Nirmala Sitharaman in April suggested steps like deepening bond markets, setting up of development financial institutions and land monetisation to meet the funding needs. The task force in its initial report released in December had projected investment of Rs 102 lakh crore in various projects to be implemented in the next five years.

"Out of the total expected capital expenditure of Rs 111 lakh crore, projects worth Rs 44 lakh crore (40 per cent of NIP) are under implementation, projects worth Rs 33 lakh crore (30 per cent) are at conceptual stage and projects worth Rs 22 lakh crore (20 per cent) are under development Information regarding project stage is unavailable for projects worth Rs 11 lakh crore (10 per cent)," it had said. The Centre (39 per cent) and states (40 per cent) are expected to have an almost equal share in implementing the NIP in India, followed by the private sector (21 per cent), according to the report.

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