National Monetization Pipeline is an initiative by the Government of India for resource mobilization through monetization of brownfield, but underutilized infrastructure assets. Rs 6 Lakh Crore worth of assets will be monetized under the NMP over a 4-year period from FY2022 to FY2025.

• Attracting private players: Limited private sector interest was observed in the privatization of Air India, BPCL, and PPP initiatives in railways, indicating potential challenges for the National Monetization Pipeline (NMP).
• Providing a balanced risk profile of assets: Accurately assessing risks in various sectors is challenging yet crucial for attracting major investors like sovereign funds to long-term projects.
• Lack of immediate revenues: Monetization of assets in less profitable sectors may face challenges due to the lack of immediate revenue streams.
• Valuation and pricing: Determining the fair value of assets and setting appropriate pricing mechanisms can be complex and subjective, leading to potential disputes.
• Asset identification and evaluation: Identifying suitable assets for monetization and conducting comprehensive evaluations to assess their potential value can be time-consuming and resource intensive.
• Legal and regulatory hurdles: Existing legal and regulatory frameworks may not adequately support asset monetization, requiring reforms and amendments.

• Risk mitigation and asset valuation: Implement robust risk assessment mechanisms and adopt internationally accepted valuation methods to ensure transparency and fair pricing.
• Dispute Resolution Mechanism: Efficient and effective dispute resolution will help improve attractiveness of projects and assets, credit rating as well as investment sentiments through speedy resolutions and certainty of returns.
• Transparent Bidding: Transparency in bidding promotes trust and helps create a level playing field which is crucial to bringing in competitive and competent bidders.
• Investor-friendly Taxation: There should be synergy between taxation and investment promotion measures in attracting foreign investments. Unpredictable policies such as retrospective taxation should be avoided.
• Performance monitoring and evaluation: Establish mechanisms to monitor the performance of monetized assets and evaluate the impact of asset monetization on service delivery and public welfare.

National Monetization Pipeline provides a critical diversification of options in mobilizing resources for infrastructure expansion in the country. Effective management of issues inherent to public-private partnerships, asset valuation, predictable government policies and execution will be crucial for success.