Centre leans on states to put asset monetization on track
As part of the playbook, the Union power ministry has already issued guidelines for monetization of transmission assets
With the national monetization pipeline (NMP) targets faltering, the union government and NITI Aayog plan to focus on asset monetization in states with line ministries told to issue guidelines to help with the sales.
As part of the playbook, the Union power ministry has already issued guidelines for monetization of transmission assets, and other ministries are expected to follow suit.
Another official said NITI Aayog has undertaken several state-specific workshops and would also organize a national workshop on monetization.
As per the plan, the Centre and NITI Aayog will initially focus on asset monetization in six states—Gujarat, Maharashtra, Karnataka, Odisha, Madhya Pradesh and Uttar Pradesh.
The potential assets to be monetized will include state highways, expressways, power transmission network, urban bus terminals and warehouses.
Assets owned by states are currently being identified for monetization in consultation with NITI Aayog.
Queries sent to the NITI Aayog and Department of Public Enterprises remained unanswered till press time.
The NMP also stresses on the need for monetization of state government assets.
The Centre has undertaken several initiatives to address the challenges faced by asset owners in undertaking monetization and to incentivize state governments and state-level entities in undertaking monetization.
Under the Centre’s incentive scheme for capital expenditure by states, the government incentivizes states to spend more on infrastructure and to sell stakes in their public sector enterprises through minority stake sales or listings along with monetization of assets.
