On Thursday 23rd July 2020 the finance ministry has requested think tank Niti Aayog to work on a five years asset monetization road map as the Centre continues efforts to meet its funding needs.
Finance Ministry Additional Secretary K Rajaraman said at a virtual session organized by industry body FICCI that “Niti Aayog has laid out an asset monetization plan worth about ₹ 1 lakh crore for the current fiscal.”
He also said that “We are now requesting Niti Aayog to bring out a five years asset monetization pipeline so that there is an indication to the market that what kind of assets would come to the market. And The government has undertaken several reforms in attracting investment in infrastructure space.”
Concerning ₹ 111 lakh crore NIP (National Infrastructure Pipeline) for 2019 to 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 to 2025 presented to Finance Minister Nirmala Sitharaman in April suggested steps such as deepening bond markets, setting up of development financial institutions and land monetization to meet the funding needs.
The task force in its initial report released in December had projected an investment of ₹ 102 lakh crore in various projects to be implemented in the next five years.
It had added that “Out of the total expected capital expenditure of ₹ 111 lakh crore, projects worth ₹ 44 lakh crore (40% of NIP) are under implementation, projects worth ₹ 33 lakh crore (30%) are at it conceptual stage and projects worth ₹ 22 lakh crore (20%) are under development Information regarding project stage is unavailable for projects worth ₹ 11 lakh crore (10%).”
According to the report, 39% by Centre and 40 % by states are expected to have an almost equal share in implementing the NIP in India, followed by 21% by the private sector.