Pandey Calls to Accelerate Asset Monetization to Boost Infrastructure

Sebi chief Tuhin Kanta Pandey stresses the need to accelerate monetization of government-owned assets in sectors like railways and energy. This move can aid infrastructure creation by harnessing capital markets, reducing reliance on government and banks. A boost in infrastructure trust markets is vital.

In a call to action, Sebi chief Tuhin Kanta Pandey emphasized the pressing need to 'accelerate' the monetization of government-held assets, particularly in the spheres of railways, roads, airports, and energy. By doing so, he anticipates a funneling of investor capital into these critical projects, aiding infrastructure development.

Pandey, who formerly led the Department of Investment and Public Asset Management, noted the reluctance of many state governments to draw up asset monetization plans. He warned that such gaps could hinder infrastructure creation, suggesting that a capital market-driven approach could alleviate this, reducing the burden on government and banks.

Highlighting the vital role of the central government's asset monetization plan, Pandey cited its impact on fostering infrastructure investment trusts (InvITs). He underlined the importance of diversifying investment sources beyond municipal bonds, aiming for broader institutional investor participation in infra securities.