How does the concept of asset monetisation create robust fiscal policy and the creation of world class infrastructure in the country? Explain (200 Words)
Refer - Financial Express
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IAS Parliament 4 years
KEY POINTS
Asset Monetisation
· Asset monetisation, as a concept, entails offering public infrastructure to the private sector or institutional investors through structured vehicles and mechanisms.
· Its critical objectives: Unlocks value from public investment in infrastructure, and It taps private sector efficiencies.
· To achieve national growth targets, India needs to invest Rs 111 lakh crore over the next five years in infrastructure.
Needed Frame Work
· Monetisation needs to be repositioned as a tool to leverage institutional capital.
· Infrastructural Investment Trusts bring in private-sector efficiencies in managing and operating assets under well-defined regulatory frameworks.
· Pipeline network, operational metro lines, storage infrastructure, transmission towers and rental earning public real estate assets should be explored as potential asset classes with re-imagined structures.
Way Forward
· To conclude, asset monetisation, when undertaken effectively, can deliver infinite value from the infrastructure assets, which will not only create substantial fiscal impact but also help in creating new and world-class infrastructure in India.
Dev 4 years
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IAS Parliament 4 years
Good attempt. Try to focus on the alignment of points writtent to improve the presentation. Keep Writing.
