The “National Monetization Pipeline” may well turn out to be another pipe dream, just as Modi’s demonetization did, producing an outcome exactly the opposite of what was promised. The demonetization was arguably more thoughtless and arbitrary, devoid of any theoretical framework, a sort of nocturnal madness. The “monetization” plan, however, has an excess of theory. It sounds great on paper as it is worded in fancy jargon that Niti Aayog bureaucrats are known to revel in spreading. This is as far as the comparisons go. But the end result could be the same: utter disaster for the nation.
The strategic objective of the asset monetization program is to unlock the value of investments in public sector assets by harnessing the capital and efficiency of the private sector, which can then be harnessed for scaling up or building infrastructure. industrial. This is a limited-term license or lease of an asset, owned by the government or a public authority, to a private sector entity for initial or periodic consideration.
Known fancifully as asset or capital recycling, it involves the transfer of performing assets over a limited period of time, or the elimination of non-core or underperforming assets to unlock ‘inactive’ capital and reinvest it in other assets or projects that offer enhanced or additional benefits. This could be used to meet the ever increasing needs of the population for better quality of public goods and services. It looks perfect on paper. But what’s going to be most critical is whether this takes the long-term public interest perspective sufficiently into account.