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Asset Monetisation and the National Monetisation Pipeline

10 February 20251 min read
ECONOMYAsset Monetisationand the NationalMonetisationPipeline10 February 2025safalsetu.com

About asset monetisation

It turns idle or underused public infrastructure (roads, railways, airports, ports, pipelines, towers) into income while the state keeps ownership.

PointMonetisationPrivatisation
OwnershipStays with governmentSold to private buyer
Private roleOperates for a fixed periodOwns outright

Objectives

  • Unlock value of public investment.
  • Bring private capital and efficiency.
  • Reinvest proceeds in greenfield projects.

National Monetisation Pipeline

  • Launched 23 August 2021; target ₹6 trillion (FY22-FY25).
  • Focus on brownfield assets that are under-used.

Exam angle

  • Largest NMP sector: roads (27%).

Test yourself

1. What was the monetisation target of the National Monetisation Pipeline launched on 23 August 2021 for FY22-FY25?

NMP aimed to raise ₹6 trillion.

2. Which sector has the biggest share (27%) in the National Monetisation Pipeline?

Roads 27%, railways 25%, power 15%.

3. How does asset monetisation differ from privatisation as described in these notes?

Monetisation leases assets for a period; ownership stays with the government.

This topic is part of Daily Current Affairs 9 & 10 February 2025 (11 topics).

All topics of the dayDay quizFebruary 2025

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