New Delhi: Commenting on the government's PSU asset monetisation plan, Finance Minister Nirmala Sitharaman said that the plan is aimed at creating a paradigm shift in infrastructure augmentation and maintenance and creating value for the government and investors. Chairing the National Workshop with the states/UTs on Asset Monetisation organised by Niti Aayog on March 9, Sitharaman sought collaboration from state governments for the holistic development of infrastructure.
"Asset Monetisation needs to be viewed not just as a funding mechanism, but as an overall strategy for bringing about a paradigm shift in infrastructure augmentation and maintenance," the minister said.
While observing that asset monetisation plan is based on the principle of value creation for government and investors, Sitharaman said that it will lead to an improvement in the productivity of brownfield infrastructure assets. She said that India can become a $5-trillion economy while striking the right balance between fiscal imperatives and socio-economic welfare, and through active collaboration between the public and private sector.
"Our vision for infrastructure is ultimately of, for and by our states. Without whose collaboration, holistic development of infrastructure is neither feasible nor impactful," she added.
The statement comes weeks after Prime Minister Narendra Modi said that 100 under-utilised or unutilised assets with PSUs, such as those in the oil and power sectors, will be monetised, creating investment opportunities of around Rs 2.5 lakh crore. While presenting Budget 2021-22, Sitharaman had sad that monetising operating public infrastructure assets is a very important financing option for new infrastructure construction. "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 said.
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