What is asset monetization in India?

As a concept, asset monetisation implies offering public infrastructure to the institutional investors or private sector through structured mechanisms. “Asset monetisation does not involve the selling of land, but it is about monetising brownfield assets”, said India’s Finance Minister Nirmala Sitharaman.

Is asset monetization good for India?

Bottomline: As we discussed above, this is a great process to fund infrastructure development in the economy and give the economy a boost by internally monetizing its unutilized assets and generating a good chunk of revenue. Looks like we are moving closer to our dreams of India becoming a super-power in the world!

What is the purpose of national monetisation pipeline?

This is necessary for creating employment opportunities, thereby enabling high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare. The framework for monetisation of core asset monetisation has three key imperatives.

What is asset monetisation?

As for NMP, the government should set small targets that can be achieved. The official reason for monetisation of assets is to unlock the value of investment made by the government in public assets which have not yielded potential returns.

What is asset monetisation Upsc?

Meaning of Asset Monetisation: In asset monetisation, the government parts with its assets — such as roads, coal mines — for a specified period of time in exchange for a lump sum payment. At the end of the period, the assets return to the government. Unlike in privatisation, no sale of government assets is involved.

When did monetization start in India?

2016 Indian banknote demonetisation

Is monetization good or bad?

Monetization is fundamentally a good idea. However, great caution and care needs to be exercised while executing this plan. It could either be the beginning of great things to come or it could become the disastrous inflection point that the 2G spectrum auction proved for privatization in India.

When was national monetization pipeline launched?

Pursuant to which, the National Infrastructure Pipeline (‘NIP’), detailing the infrastructure vision for the country, was released in December 2019.

What is asset Monetisation Upsc?

When was national monetisation pipeline launched?

Finance Minister Nirmala Sitharaman on August 23 will launch the National Monetisation Pipeline (NMP), which will list out the government’s infrastructure assets to be sold over the next four years, an official statement said.

What does the term monetize mean when speaking about monetary policy?

What Does Monetization Mean? Monetization literally means to convert something into money. In practice, this means turning things into revenue-generating activities, services, or assets.

What is Monetisation policy?

In a monetisation transaction, the government is basically transferring revenue rights to private parties for a specified transaction period in return for upfront money, a revenue share, and commitment of investments in the assets.