Asset monetisation to bring paradigm shift for infra growth: FM Sitharaman

Asset monetisation must not be viewed as a funding mechanism, but as a strategy to implement a paradigm shift in infrastructure (infra) augmentation and maintenance, Finance Minister Nirmala Sitharaman said on Tuesday.

The government’s push to asset monetisation is based on the objective of value creation for both the government and investors, Sitharaman said at the national workshop with states and Union Territories (UTs) on asset monetisation. Creating value and improving productivity of infra assets can be done using innovative instruments, she said.

Around 300 participants from states and UTs attended the workshop organised by the Department of Economic Affairs and NITI Aayog. Monetisation of core and non-core assets was the theme of the workshop, and a presentation was made on the same, including the modalities with which assets of public sector undertakings (PSUs) can be monetised.

A presentation was also given by the chairman of the National Highways Authority of India and Maharashtra State Road Develo­pment Corporation to share their experience of monetising highways and state expressways.

In her Budget speech, Sitharaman had said monetising operating public infra assets is an important financing option for new infra construction.  The Department of Investment and Public Asset Management has sought a list of assets from government departments and PSUs for creating the dashboard, and CRISIL has been tasked to prepare a national monetisation pipeline.

Sitharaman called for “a proactive and collaborative approach by the central and state agencies for achieving the objectives of the national monetisation pipeline,” the Aayog said in a statement.

NITI Aayog Chief Executive Officer Amitabh Kant, also present at the workshop, said a partnership between central and state governments is imperative for leveraging resource efficiencies of the private sector, and recycling public funds for new infra creation.

The workshop also discussed benefits and necessary conditions to leverage private sector participation for monetisation of assets. A framework for a collaborative partnership between the Centre and states was also conceptualised