BackNMP will free capital using brownfield assets: Ind-Ra
Ind-Ra said that NMP will reinforce the government’s focus on infrastructure spending and augment capital creation for new infrastructure development
PremiumNEW DELHI : The National Monetization Pipeline (NMP) will unlock capital through the monetization of de-risked brownfield assets, India Ratings and Research (Ind-Ra) said on Friday.
Over the past decade, a sizeable inventory of infrastructure assets has been created, which can now be leveraged for unlocking the value of private sector investments in brownfield assets. This will generate cash inflows required to create greenfield infrastructure assets in the form of National Infrastructure Pipeline.
Ind-Ra said that NMP will reinforce the government’s focus on infrastructure spending and augment capital creation for new infrastructure development.
The government of India announced NMP on 23 August 2021 in line with the roadmap introduced in the Union Budget 2021-22, which is further developed in consultation with Niti Aayog. The government through NMP intends to create a medium-term road map for line ministries and agencies for providing medium-term visibility to investors and to bring better efficiency in public asset management.
In its analysis of the government’s monetization programme, Ind-Ra said selection of private partners should be through a transparent mechanism and utilization of the proceeds received towards well-defined uses such as new infrastructure creation.
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