New Delhi (10.03.2021): A Niti Aayog workshop on 9 March 2021 brainstormed the issue of core and non-core asset monetization to find and determine the modality of such monetization among public sector entities in the light of experience gained in this regard by some public and private sector companies. The virtual workshop was co-organized by the Department of Economic Affairs (DEA) and was attended by over 300 participants including State and UT chief secretaries and secretaries for transport, power, and public works departments. In her speech as the chair of the workshop, FM Nirmala Sitharaman stressed the need for monetization as an alternative funding mechanism to the National Infrastructure Pipeline (NIP) funding provided in the FY22 budget for achieving improved operational value. She also called for a proactive and collaborative approach between the Central and State agencies for achieving the objectives of the National Monetization Pipeline. The NITI Aayog highlighted the strategic need for monetization and the various modalities therein. Echoing the Finance Minister’s words, he emphasized that the partnership between Central and State agencies is imperative for leveraging the enormous resource efficiencies of the private sector and for recycling public funds for new infrastructure creation. The Secretary, DIPAM, briefed the participants about monetization of non-core assets and disinvestment of public sector enterprises, including the transactions currently underway. He also highlighted the potential monetization opportunities for States and the pre-requisites for being successful in this regard. Participants exchanged their views on asset monetizations as well as the experiences of asset owners from the public and private sectors. The NHAI Chairman shared his experience of successful monetization of National Highways through mechanisms such as Toll Operate Transfer and Infrastructure Investments Trust. Bringing in the State perspective in this space, the Maharashtra State Road Development Corporation presented its experience in the monetization of the State expressway. Macquarie India, KKR, and IndiGrid shared investors’ perspectives on selection and investment in brownfield assets. The various presentations made by the participants delineated the expectations of domestic and overseas institutional infrastructure investors while investing in these assets. The workshop also discussed the various benefits and pre-requisites of leveraging private sector participation for monetization. It effectively conceptualized a collaborative partnership framework between the Centre and States for realizing the country’s infrastructure vision and growth agenda.
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Niti workshop brainstorms issues of asset monetization
By IndianMandarins - 2021-03-10 08:57:00
New Delhi (10.03.2021): A Niti Aayog workshop on 9 March 2021 brainstormed the issue of core and non-core asset monetization to find and determine the modality of such monetization among public sector entities in the light of experience gained in this regard by some public and private sector companies.
The virtual workshop was co-organized by the Department of Economic Affairs (DEA) and was attended by over 300 participants including State and UT chief secretaries and secretaries for transport, power, and public works departments.
In her speech as the chair of the workshop, FM Nirmala Sitharaman stressed the need for monetization as an alternative funding mechanism to the National Infrastructure Pipeline (NIP) funding provided in the FY22 budget for achieving improved operational value. She also called for a proactive and collaborative approach between the Central and State agencies for achieving the objectives of the National Monetization Pipeline.
The NITI Aayog highlighted the strategic need for monetization and the various modalities therein. Echoing the Finance Minister’s words, he emphasized that the partnership between Central and State agencies is imperative for leveraging the enormous resource efficiencies of the private sector and for recycling public funds for new infrastructure creation.
The Secretary, DIPAM, briefed the participants about monetization of non-core assets and disinvestment of public sector enterprises, including the transactions currently underway. He also highlighted the potential monetization opportunities for States and the pre-requisites for being successful in this regard.
Participants exchanged their views on asset monetizations as well as the experiences of asset owners from the public and private sectors.
The NHAI Chairman shared his experience of successful monetization of National Highways through mechanisms such as Toll Operate Transfer and Infrastructure Investments Trust.
Bringing in the State perspective in this space, the Maharashtra State Road Development Corporation presented its experience in the monetization of the State expressway.
Macquarie India, KKR, and IndiGrid shared investors’ perspectives on selection and investment in brownfield assets.
The various presentations made by the participants delineated the expectations of domestic and overseas institutional infrastructure investors while investing in these assets.
The workshop also discussed the various benefits and pre-requisites of leveraging private sector participation for monetization. It effectively conceptualized a collaborative partnership framework between the Centre and States for realizing the country’s infrastructure vision and growth agenda.
