TMI BlogNATIONAL MONETIZATION PIPELINEX X X X Extracts X X X X X X X X Extracts X X X X ..... NATIONAL MONETIZATION PIPELINE - By: - Mr. M. GOVINDARAJAN - Other Topics - Dated:- 8-9-2021 - - 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 monetizati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2855 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 57 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 222 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 28 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 628 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Hyd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ro 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 J agdishpur Haldia Barauni Guwahati Pipeline N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etwork (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 45 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts 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: National Monetization Pipeline Volume I Monetization Guide Books; National Monetization Pipeline Volume II Asset Monetization - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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