Tax Management India. Com
                        Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Articles News
Highlights
D. Forum
What's New
Sub-Menu

Share:      

        Home        
 
Article Section
Home Articles Other Topics Mr. M. GOVINDARAJAN Experts This
← Previous Next →

NATIONAL MONETIZATION PIPELINE

Submit New Article

Discuss this article

NATIONAL MONETIZATION PIPELINE
By: Mr. M. GOVINDARAJAN
September 8, 2021
All Articles by: Mr. M. GOVINDARAJAN       View Profile
  • Contents

Introduction

Under the Union Budget 2021-22, monetization of assets has been identified as one of the three pillars for enhanced and sustainable infrastructure financing in the country. The Budget also envisioned preparation of a ‘National Monetization Pipeline’ (‘NMP’ for short) to provide a direction to the monetization initiative and visibility of investors.  NITI Aayog was tasked with creation of the NMP for brownfield core infrastructure assets.  Niti Aayog announced the NMP during July 2021.   The report on NMP is of two volumes-

  • Volume I – Guidance book for asset monetization;
  • Volume II – Roadmap for asset monetization over the medium term including the pipeline of infrastructure assets.

Objectives

The objectives of NMP are-

  • To serve as a medium-term roadmap for the line ministries and agencies;
  • To provide medium-term visibility to investors on infrastructure assets pipeline;
  • To provide a platform for ministries to track asset performance;
  • To bring in greater efficiency and transparency in public assets management.

The NMP looks to raise ₹ 6 lakh crore in a span of four years from FY 2022 – 2025.  The following table shows the sector wise monetization value in NMP-

Sectors – monetization value in NMP

Sl.No.

Sector

Percentage in value

1

Roads

27

2

Railways

25

3

Power Transmission

8

4

Power Generation

7

5

Natural Gas Pipelines

4

6

Product Pipeline/others

4

7

Urban Real Estate

2

8

Telecom

6

9

Warehousing

5

10

Mining

5

11

Aviation

3

12

Ports

2

13

Stadiums

2

TOTAL

100

Roads

The indicative monetization value of Roadways assets over 2022 – 2025 is ₹ 26500  crores.  The following table shows the expectation of monetization value and the length of assets financial year wise-

Phasing of monetary value  for Roadways assets

Financial Year

Monetization Value

(In crores)

Length of assets
(in Kms.)

2022

30000

5000

2023

32855

5276

2024

43979

7330

2025

53366

8894

TOTAL

160200

26500

Railways

The indicative monetization value of Railway Assets over 2022 – 2025 is ₹ 151396 crores.

Phasing of monetary value for Railway assets wise

Asset type

Total

Monetization value

(in crores)

Railway Station development

400 Stations

76250

Passenger train operations

90 trains

21642

Railway track

1400 kms

18700

Good Sheds

265

5565

Konkan Railway

741 kms

7281

Hill Railways

4 Nos. – 244 Kms

630

Dedicated Freight Corridor

673 kms

20178

Railway Stations

15 Stadiums

2250*

TOTAL

 

152496

*Railway Colonies redevelopment

Year wise pipeline annual phasing of the assets by total value generated are-

  • FY 2022 – ₹ 17810 crores;
  • FY 2023 – ₹ 57222 crores;
  • FY 2024 – ₹ 44907 crores;
  • FY 2025  - ₹ 32557 crores.

Total=      ₹ 152496 crores.

Power Transmission

The indicative monetization value of power transmission Assets over 2022 – 2025 is ₹ 45200 crores.

Pipeline phasing for Power Transmission

Financial Year

Assets (in ckm)

Monetization value

(In crores)

2022

4873

7700

2023

4767

7500

2024

9494

15000

2025

9494

15000

TOTAL

28628

45200

Telecommunications

The indicative monetization value of power transmission Assets over 2022 – 2025 is ₹ 35100  crores.

Phasing of monetary value – Telecom assets (in crores)

Sl. No.

Asset Type

FY 22

FY 23

FY 24

FY 25

Total

1

Bharatnet Fiber

0

15780

10520

0

26300

2

BSNL & MTNL Tower Assets

0

4400

4400

0

8800

TOTAL

0

20180

14920

0

35100

Power Generation

The indicative monetization value of Power Generation Assets over 2022 – 2025 is ₹ 39832 crores.

Phasing of pipeline – Power Generation

Category

FY 22

FY 23

FY 24

FY 25

Total

Hydro assets – existing

373

870

870

1243

3355

RE assets – existing

0

245

612

1106

1962

Hydro assets – to be operational

0

0

59

59

117

RE assets – to be operation

0

0

235

300

532

TOTAL

373

1115

1775

2707

5970

Annual phasing – Power Generation

Asset Type

FY 22

FY 23

FY 24

FY - 25

Total

Monetization value (in crores)

2770

7808

11704

17550

39832

Assets considered MW

373

1115

1775

2707

5970

Natural Gas pipeline

The indicative monetization value of Natural Gas   Assets over 2022 – 2025 is ₹ 24462  crores.

Operational Natural Gas Pipelines of GAIL

Sl. No.

Network/Region

Length (in kms)

1

Hazira-Vijaipur-Jagdishpur & Gas Rehabilitation and Expansion

Project & Dahej-Vijaipur Pipeline Network (HVJ-GREP-DVPL-I)

5030

2

Dahej-Vijaipur Pipeline (II) & Vijaipur-Dadri Pipeline Network

1290

3

Tripura network

60

4

Cauvery basin

242

5

Chhainsa-Jhajjar-Hissar Pipeline Network (CJPL)

304

6

Dahej-Uran-Panvel-Dabhol Pipeline Network

935

7

Dadri-Bawana-Nangal Pipeline Network

868

8

Dabhol-Bengaluru Pipeline Network (DBPL)

1148

9

Gujarat Regional Pipeline network

663

10

Jagdishpur Haldia & Barauni Guwahati Pipeline Network

(JHBDPL)

1098

11

KG Basin Pipeline network

889

12

Kochi-Koottanad-Bengaluru-Mangaluru Pipeline Network

(KKBMPL)

504

13

Mumbai Regional Pipeline Network

125

14

Dedicated Networks

233

TOTAL LENGTH

13389

Phasing of pipeline – Natural gas

Sl. No.

Financial year

Monetization value

(in crores)

Length in Kms.

1

2022

6687

2229

2

2023

4663

1554

3

2024

6218

6218

4

2025

6894

6894

 

TOTAL

24462

16895

The total value of assets considered for monetization is estimated at ₹ 22,503 crore for FY 2022-2025.

Phasing of monetization value – Petroleum product / LPG pipeline & other assets (In Rs. cr)

Sl. No.

Asset Type

FY 22

FY 23

FY 24

FY 25

Total

1

Petroleum product pipeline

2697

1873

4164

4164

12898

2

LPG Pipeline

0

40

183

183

405

3

Hydrogen generation plants

600

600

0

0

1200

4

ESG  Assets

2000

2000

2000

2000

8000

 

TOTAL

5297

4513

6347

6347

22503

Warehousing assets

The indicative monetization value of Natural Gas   Assets over 2022 – 2025 is ₹ 28900  crores.

Phasing of monetization value – Warehousing assets (Rs cr)

Sl. No.

Asset type

FY22

FY23

FY24

FY25

Total

1

Storage infrastructure - FCI

3500

5250

5250

3500

17500

2

Storage infrastructure - CWC

2280

3420

3420

2280

11400

 

TOTAL

5780

8670

8670

5780

28900

Mining assets

The indicative monetization value of mining assets over 2022 – 2025 is ₹ 28747  crores.    The Monetization value in the pipeline expected is as detailed below-

  • FY 2022 – ₹ 3394 crore
  • FY 2023 – ₹ 6060 crore
  • FY 2023 – ₹ 8726 crore
  • FY 2025 – ₹ 10567 crore

Total      = ₹ 28747 crore

Airports

The indicative monetization value of Airport assets over 2022 – 2025 is ₹ 20782 crores.  The Monetization value in the pipeline expected is as detailed below-

  • FY 2022 – ₹ 5720 crore
  • FY 2023 – ₹ 7299 crore
  • FY 2023 – ₹ 3996 crore
  • FY 2025 – ₹ 3767crore

Total      = ₹ 20782 crore.

Ports

The indicative monetization value of Airport assets over 2022 – 2025 is ₹ 12828 crores for 31 projects in 9 major ports.

Phase monetization value for ports

Sl. No.

Financial year

Monetization value

(In crores)

No. of projects

1

FY 2022

1383

13

2

FY 2023

3553

10

3

FY 2024

4377

3

4

FY 2025

3515

5

 

TOTAL

12828

31

Sports Stadia

The indicative monetization value of Sports Stadia assets over 2022 – 2025 is ₹ 11450 crores.  The Monetization value in the pipeline expected is as detailed below-

  • FY 2022 – ₹ 1650 crore
  • FY 2023 – ₹ 2100 crore
  • FY 2023 – ₹ 3200 crore
  • FY 2025 – ₹ 4500 crore

Total      = ₹ 11450 crore.

Conclusion

Asset monetization, based on the philosophy of ‘Creation through Monetization’, will tap institutional investment and long term patient capital into stable mature assets in turn generating financial resources for new infrastructure asset creation . This will enable economic growth, generating employment opportunities and better prospects for country’s youth.

References:

  1. National Monetization Pipeline – Volume I – Monetization Guide Books;
  2. National Monetization Pipeline – Volume II – Asset Monetization

 

By: Mr. M. GOVINDARAJAN - September 8, 2021

 

 

Discuss this article

 
← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||