TaxTMI 
TaxTMI 
08 Sep 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 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 |
|
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:
- National Monetization Pipeline – Volume I – Monetization Guide Books;
- National Monetization Pipeline – Volume II – Asset Monetization