No, the central government does not sell assets worth 6 lakh crores through the national asset monetization pipeline project.
In light of the launch by the Union Minister of Finance of the ‘National Asset Monetization Pipeline’, in which the Union government plans to monetize Rs 6 lakh crore over the next four years, a social media post claiming Modi government plans to sell Rs 6million. lakh crore rupees worth of assets is widely shared. Let’s check the claim made in the mail.
Claim: The Modi government plans to sell Rs 6 lakh crore worth of national assets over the next four years.
Made: Through the National Asset Monetization Pipeline, the government plans to lease public assets for a specified period through various instruments, including the PPP model. Ownership of these assets will remain with the government and the government will retain these assets after the specified rental period. This idea is misinterpreted as the government trying to sell national assets. In fact, such attempts were made even under the previous UPA regime when the government of the day proposed to monetize Air India’s assets. Therefore, the assertion made by post is MISLEADING.
Earlier this week, Union Finance Minister Nirmala Sitharaman launched the National Asset Monetization Pipeline, in which the government plans to monetize 6 lakh crore of assets like roads, airports, sports stadiums, stations, warehouses, etc. 2022 to FY 2025, with assets worth Rs 0.88 lakh crore to be deployed for monetization during the current fiscal year. The pipeline was developed by NITI Aayog, and as a result NITI Aayog issued a report elucidating the proposed monetization pipeline.
The proposed idea of asset monetization is misinterpreted as the Union government selling domestic assets. However, the government claims that “ownership of these assets (listed for monetization) remains with the government. There will be a mandatory discount. They will have to be returned (to the government) after a certain time ‘. Even according to the report released by NITI Aayog, the project “Asset monetization involves a limited term license / lease of an asset, owned by the government or a public authority, to a private sector entity for initial or periodic consideration.”
As a result, NITI Aayog has defined four approaches namely the Market Approach, Capex Approach, Book Value Approach and Enterprise Value Approach to estimate the monetization value of assets. Assets identified through these methods are monetized through a range of instruments such as Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to monetize assets in the road and road sectors. electricity under structured finance models. Likewise, different PPP models, namely Operate Maintain Transfer (OMT), Toll Operate Transfer (TOT) and Operations, Maintenance & Development (OMD) are followed to monetize brownfield assets like highways and airports under direct contractual models.
Monetization of Assets – Government of Congress:
However, this is not the first time that the Indian government has monetized domestic assets. Even during the UPA regime, attempts were made to monetize Air India’s assets. In 2014, in a written response to a question on this matter, the government of the day said it was considering a proposal to monetize Air India’s assets, and the response further listed the properties the government planned to remove. monetize.
Responding to criticism of the proposed monetization pipeline, Union Minister Smriti Irani recalled examples such as the monetization of the Mumbai-Pune highway, the proposal to monetize New Delhi station during the reign of Congress .
In summary, the central government does not sell assets worth 6 lakh crores through the National Asset Monetization Pipeline Project.