Saturday, February 5, 2022

Asset Monetization



➰ About Asset Monetization 

➰ Asset Monetization involves the creation of new sources of revenue by unlocking of the value of hitherto unutilized or underutilized public assets.

➰ Internationally, it is recognized that public assets are a significant resource for all economies.

➰ Many public sector assets are sub-optimally utilized and could be appropriately monetized to create greater financial leverage and value for the companies and of the equity that the government has invested in them.

➰This helps in the accurate estimation of public assets which would help in the better financial management of government/public resources over time.

➰NATIONAL MONETIZATION PIPELINE.

➰ The NMP comprises a four-year pipeline of the Central Government’s brownfield infrastructure assets.

➰ It will serve as a medium-term roadmap for the Asset Monetization initiative of the government, apart from providing visibility for the investors.

➰ Incidentally, the 2021-22 Union Budget, laid a lot of emphasis on Asset Monetization as a means to raise innovative and alternative financing for infrastructure.

➰ It has to be noted that the government views asset monetization as a strategy for the augmentation and maintenance of infrastructure, and not just a funding mechanism.

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