Consider the following statements: 1. National Monetisation Pipelin

Consider the following statements:

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1. National Monetisation Pipeline estimates that for the period 2022-2025, the top three sectors in terms of monetization potential are roads, railways, and oil and gas pipelines
2. Under the National Monetisation Pipeline, the instruments to be used for asset monetization include Public-Private Partnership concessions and Infrastructure Investment Trusts

Which of the statements given above is/are correct ?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC CAPF – 2024

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Statement 1 is incorrect. While Roads and Railways are indeed among the top sectors for monetization under the National Monetisation Pipeline (NMP) for FY22-FY25, the third sector with high potential was Power Transmission, followed by Power Generation, Natural Gas Pipelines, etc. Oil and Gas pipelines combined accounted for a smaller percentage than Power Transmission. Statement 2 is correct. The NMP framework explicitly includes Public-Private Partnership (PPP) concessions, Operation and Maintenance contracts, and the use of structured financing vehicles like Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) as instruments for asset monetization.

The National Monetisation Pipeline (NMP) is a plan to unlock the value of underutilized public sector assets across infrastructure sectors through temporary transfer of revenue rights to private players.

The NMP identifies brownfield assets across sectors like roads, railways, power, telecom, warehousing, ports, mining, aviation, and stadiums for monetization. The underlying principle is to leverage private sector efficiency and capital for operation and maintenance while retaining ownership with the government entity.

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