Government garnered 96,000 crore through asset monetisation

Context

Recently, the government has completed transactions worth Rs.96,000 under the National Monetisation Pipelinein(NMP)2021-22 surpassing the first year's target of Rs.88,000crore.

Key point

• As per the recent data release, the government has garnered 96,000 crores in 2021-22 since the launch of NMP, in which 
• Roads and Highways monetized worth Rs.23,000 crore
• Power sector collected Rs.9,500 crore 
• Coal mining generated Rs.40,000 crore and 
• Minerals mining fetched Rs.18,700 crore.

About NMP

• NMP program has been launched by the NITI in august 2021 to oversee the monetization of a government asset.
• This has been launched with an aim to unlock value in brownfield projects by engaging the private sector.
• NMP will also provide a clear framework for monetization and give potential investors a ready list of assets to generate investor interest
• Under this monetization program revenue rights will be transferred but not the ownership of the project.
• The fund generated from these projects will be used for the infrastructural development of the country 
• An aggregate monetization potential of Rs.lakh crores has been estimated under this NMP through core assets of the central government.
• As of now, only assets of central government ministries and CPSEs such as roads, railways, and power sectors comprising 66% and telecom, mining, aviation, ports, natural gas, and petroleum product comprising 44% of estimated value have been included in the list.

What is Monetisation?

• It is a type of transaction under which the government transferred revenue rights to private parties for a specified transaction period in return for upfront money, a revenue share, and commitment of investment in the assets.
• For instance, Real estate investment trusts (REITs) and infrastructure investment trusts are the key structure used to monetize assets in