The National Monetisation Pipeline, announced in the Budget can be a major financing option for infrastructure creation in the country. Discuss (200 Words)
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tina 4 years
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IAS Parliament 4 years
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tina 4 years
IAS Parliament 4 years
KEY POINTS
· The National Monetisation Pipeline, announced in the Budget to turn unutilised or underusitilised assets lying with the government and PSUs into money can be a major financing option for infrastructure creation.
· It can also strengthen the capital base as well as unlock the value of the assets owned by the PSUs.
· Monetisation will generate returns for PSUs owning these unutilised assets. Also, with the private sector bidding for these assets, result in productive use and generate employment.
· The best course of action would be to constitute a commission for identifying assets for monetisation.
· This commission may be headed by a retired Supreme Court judge and consist of eminent persons thereby creating a transparent mechanism.
· It is essential to clarify that these assets belong to the public sector undertakings or authority concerned.
· Hence, the revenue raised through monetisation should not be used for the government’s short-term budgetary support and must adhere strictly to company law norms.
· Private initiatives in social infrastructure can also be encouraged in sectors such as healthcare, and education, thereby making the existing social infrastructure more robust.
