Wednesday, October 20, 2021

Editor's Space

Infusing Vigour in Infrastructure 

 

 

Union Finance Minister Nirmala Sitharaman recently announced a  Rs.6 lakh crore National Monetisation Pipeline (NMP), which is aimed to unlock value in infrastructure assets across sectors including airports, railways, roads, shipping, gas pipeline, etc. “NMP estimates aggregate monetisation potential of Rs.6 lakh crores through core assets of central government over the four-year period from FY 2022 to FY 2025. Ownership of assets will remain with the government and there will be a mandatory hand-back.” Asset monetization will unlock resources and lead to value unlocking, she said.

 

 

This plan essentially intends to infuse funds into infrastructure sector and fast track development projects. Road assets, the biggest beneficiary of this plan, worth Rs.1.60 lakh crore will be monetized over four years till FY25, which will be implemented by the Road Transport and Highways Ministry and the National Highways Authority of India (NHAI). With such a promising measure, the government has extended hands of partnership with the private sector and a successful public private partnership can be harnessed going ahead. With the poised capabilities of the private players, the government aims to monetize these either languishing or under-utilized assets.

 

 

While Covid-19 has hit hard each and every industrial sector, it has also proved to be an opportunity for the government and private companies to have a hard look at the assets which are under-utilized. Thankfully, government and companies in tandem have looked inwards and have been finding means and ways to enhance efficiency and boost productivity. This NMP plan is one such measure, which certainly reflects the government’s intent to boost infrastructure development, which is the KEY to enhance GDP. As the government is all set to transition towards new avenues of growth, it’s time now that the private players show their mettle in taking the trajectory forward from here on.

 

 

All EYES are on INFRASTRUCTURE players once again and forever will be!

 

 

Get on the driver’s seat and ride the growth bandwagon that is set to transform the infrastructure landscape…




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