Niti Aayog seeks to empanel TA for PSU asset, pipeline monetisation & disinvestment

• The objective of the proposed monetisation is to raise long-term private investment in lieu of the right to operate, maintain and earn revenue from such core assets, said the Aayog

• Niti Aayog is seeking to select three panels of consultants, one each for 'Pipeline Consultant(s),' 'Monetisation Consultant(s)' and 'Disinvestment Consultant(s)'

New Delhi: Government think tank Niti Aayog is seeking to empanel transaction adviser for core PSU asset monetisation and disinvestment and has floated a request for proposals (RFP) in this regard. "The objective of the proposed monetisation is to raise long-term private investment in lieu of the right to operate, maintain and earn revenue from such core assets over a pre-specified tenure," Niti Aayog said in the RFP. The news comes close on the heels of the announcement made by Finance Minister Nirmala Sitharaman in her Budget speech regarding the formation of a National Monetisation Pipeline.

Niti Aayog needs consultants for pipelines, PSU asset monetisation, disinvestment

According to the RFP document, Niti Aayog is seeking to select three panels of consultants, one each for 'Pipeline Consultant(s),' 'Monetisation Consultant(s)' and 'Disinvestment Consultant(s).' The consultants will be responsible for providing financial consultancy services for the monetisation of pipelines and/or disinvestment pipeline projects and other core assets of PSUs and for providing transaction advisory services.

The Niti Aayog "invites proposals from interested firms for empanelment under either one or more than one categories of empanelment ie Pipeline Consultant, Monetisation Consultant and Disinvestment Consultant…and who shall deliver end-to-end Consultancy services or a combination of identified deliverables under such Consultancy, for various Projects," said the RFP.

Niti Aayog assisting PSUs, Central govt bodies, state govts in identifying assets

In line with the announcements made by the Finance Minister, the Niti Aayog is assisting statutory bodies, PSUs and other undertakings within the purview of the Central government and state governments in undertaking a detailed assessment of potential assets for monetisation and the transaction process for monetisation of various identified assets.

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Niti Aayog is also aiding state governments in identifying potential public sector entities for disinvestment and undertaking the process for identified entities. 

The backdrop

In her Budget 2021-22 speech, Sitharaman had said that monetising operating public infrastructure assets is a very important financing option for new infrastructure construction. She had said that a National Monetisation Pipeline of potential brownfield infrastructure assets will be launched. "An Asset Monetisation dashboard will also be created for tracking the progress and to provide visibility to investors," she had added. The government has set a target of raising Rs 1.75 lakh crore from PSU disinvestment in FY22.

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