Brace up to pay heavily for using Rail station, airport, roads as govt draws infra monetisaton plan

New Delhi: To shore up finances for cash-strapped government, Finance Minister Nirmala Sitharaman has announced a 4 year National Monetisation Pipeline worth about Rs 6 lakh crore from infrastructure projects.

The Government will give management and running rights to private players in brownfield infra projects. Sitharaman said the ownership will remain with government.

The assets in the railways, roads and power sectors will constitute about tw0-thirds of the overall value of the infra assets to be monetized. The other 33 percent of the value will be derived from sectors such as mining, telecom, aviation, natural gas, ports and petroleum product pipelines, warehouses and even stadiums.

Sitharaman said this monetization exercise will create more value for infra creation in India and explore innovative avenues of private participation and even the ownership will remain with the government. 

“There is no land here, this entire (NMP) is talking about brownfield projects where investments have already been made, where there is a completed asset which is either languishing or it is not fully monetised or is under-utilised. So by bringing in private participation in this, you will be able to monetise it better and ensure further investment in infrastructure building,” she said.

Speaking at the press conference organised by Sitharaman, NITI Aayog CEO Amitabh Kant said that about Rs 1.6 lakh crore will be monetized from the roads sector, Rs 1.5 lakh crore from rail sector and Rs 79,000 crore from the power sector.

The government will also monetise Rs 45,200 crore from power transmission sector, Rs 20,800 crore from airports sector,  Rs 35,000 crore from telecom, Rs 13,000 crore from ports and Rs 11,500 crore from stadia. The monetisation will be done through InvIT mode or public-private partnerships PPPs).