National Monetisation Pipeline: How Realistic Is The Target: Systematix

National Monetisation Pipeline: How Realistic Is The Target: Systematix

A road sign stands on the side of the Agra-Lucknow Expressway on the outskirts of Lucknow, Uttar Pradesh, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

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Systematix Research Report

Earlier in 2020, the Indian government announced a mega spending plan of Rs 111 trillion over FY20-25 under its National Infrastructure Pipeline.

However, with the Covid-19 pandemic worsening the Centre and States’ already weak fiscal situation, the government is exploring alternative mechanisms to fund its infrastructure capex and announced plans to monetise assets worth Rs 6 trillion through the National Monetization Pipeline.

Our deep-dive analysis into the NMP suggests that the plans are over-ambitious and would help raise direct proceeds of only ~Rs 3.4 trillion for the government over FY22-25 even in the best-case scenario, which is less than 5% of the overall planned infrastructure capex over that period.

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Systematix Engineering and Capital Goods - Sector update.pdf
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