National Monetization Pipeline Program (NPP) to be presented by Finance Minister Nirmala Sitharaman
It is believed that with the help of the program, the government is planning to raise Rs 6 lakh crore. This program is also known as Asset Monetization.
Finance Minister Nirmala Sitharaman will present the National Monetization Pipeline Program (NMPP) today. According to the news that is coming, through this program, the central government will fund infrastructure projects through disinvestment in government companies. It is believed that with the help of the program, the government plans to raise Rs 6 lakh crore. This program is also known as Asset Monetization. According to financial experts, the central government can give a clear picture of a project to the investors with the help of this program.
Will be announced tonight
Its formal announcement will be made today at 5 pm. It was announced when the budget was presented this year. There will be a dashboard system in which it will be told in which sector to monetize the asset and how much money will come from it. If sources are to be believed, the government is planning to raise Rs 6 lakh crore through asset monetization. The maximum monetization is expected from the highway sector and railways.
Better maintenance
Its formal announcement will be made today at 5 pm. It was announced when the budget was presented this year. There will be a dashboard system in which it will be told in which sector to monetize the asset and how much money will come from it. If sources are to be believed, the government is planning to raise Rs 6 lakh crore through asset monetization.
The maximum monetization is expected from the highway sector and railways. Finance Minister Nirmala Sitharaman, in her budget speech for 2021-22, had described asset monetization as a very important financing option for the creation of new infrastructure. The government is looking at monetization of assets not only as a means of funding but as a better strategy for maintenance and expansion of infrastructure projects.
Which sectors did the government choose
The government is expected to get 1.6 lakh crore rupees through the 26,700 km long national highway. After this, the government’s share is likely to come to Rs 1.5 lakh crore through 400 railway stations, 150 trains and railway tracks and woodsheds. Apart from this, 0.67 lakh crore from the power sector, which includes asset monetization of 42,300 circuit kilometers of transmission, Rs 0.24 lakh crore from gas pipeline, Rs 0.39 lakh crore from telecom, Rs 0.29 lakh crore from warehousing, Rs 0.32 lakh crore from mining, Rs 0.21 lakh crore from airports, Asset monetization of the port is expected to bring in Rs 0.13 lakh crore and monetization of stadiums is expected to bring in Rs 0.11 lakh crore. The government has planned to monetize two national stadiums of the country.
What is disinvestment
The process of selling the government’s stake in government companies (PSUs) is called disinvestment or dis-investment. The government has a significant stake in many companies. Generally these companies are called public undertakings or PSUs.
Disinvestment is actually an important source of money for the government. The government invites retail and institutional investors (this includes foreign investors) to invest in that PSU by issuing an offer for sale of its share in the stock market.
Through this process of disinvestment, the government reduces its ownership in the concerned company (PSU) by selling its shares. Through this process of disinvestment, the government gets money to spend on other schemes.
One of the objectives of the disinvestment process in a PSU is better management of that company. In fact, public sector (PSU) companies do not work only keeping in mind the profits, so many times their work does not make much profit.
Disinvestment in a PSU can be done either by selling shares in the hands of a private company or their shares can be issued to the general public for purchase. Many times people take disinvestment to mean privatization of a government company, but it is not so.
There is a difference between privatization and disinvestment. If a PSU is being privatized, then the government sells more than 51% of its stake in it to the private sector. In the process of disinvestment or disinvestment, the government sells some of its share, but its ownership remains in the PSU.
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