Underutilized brownfields will be monetized, government will retain ownership

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However, ownership of the assets will be retained by the Center.

In addition, no plots of land will be taken under the NMP, Sitharaman said after unveiling the pipeline to monetize the assets of central ministries and public sector entities.

“Asset monetization, based on the philosophy of creation through monetization, aims to harness private sector investments for the creation of new infrastructure,” she said.

“This is necessary to create employment opportunities, thereby enabling high economic growth and seamlessly integrating rural and semi-urban areas for the overall public welfare.”

According to Sitharaman, NMP focuses on brownfields where investments have already been made but are underutilized.

These underutilized brownfield assets are found in industries such as roads, railways, airports, mining and electricity.

Sitharaman said NPM is needed to create jobs and trigger high economic growth.

In addition, the NMP will bring in private capital that will be used for the creation of infrastructure, she said.

According to an official statement, the 5 main sectors in terms of contribution to the PNM are roads (27%), followed by railways (25%), electricity (15%), oil and gas pipelines (8% ) and telecommunications (6 percent).

In terms of annual phasing by value, 15 percent of assets with an indicative value of Rs 0.88 lakh crore should be deployed during the current fiscal year (FY22).

In addition, the assets and transactions identified under the NPM should be deployed through a range of instruments.

“These include direct contractual instruments such as public-private partnership concessions and capital market instruments such as infrastructure investment trusts (InvITs) among others,” the statement said.

“The choice of instrument will be determined by the sector, the nature of the asset, the timing of transactions, the profile of the target investor and the level of operational or investment control envisaged to be retained by the owner of the assets, etc. “

“With the announcement of the NMP and the establishment of a clear roadmap for the same, we have gained the attention of ‘serious’ investors around the world after a while. Long-term investors interested in investing in infrastructure have always wanted to know what the next step is? KPMG in India, said Manish Aggarwal, Partner and Head of Infrastructure.


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