What do you understand by asset monetization? Why is it needed in India? In this context, discuss the issues that need to be addressed for the National Monetisation Pipeline to succeed.

Budget 2021-22 has emphasised on 'asset monetization'. Asset monetization refers to transfer of public assets to private entity or institution in exchange of operational rights. Asset monetization is different from disinvestment where asset is sold off and ownership goes to private body and after stays with government. Need for asset monetization in India: 1. Apply public assets were either vacant or unused and lose without any construction/use.

2. Increased maintenance cost of unused assets. Monetization would value/end this cost, shifting it to private body. 3. Much needed monetary benefit to government, used maybe for generation of other assets. 4. Reduce fiscal deficit of government. 5. Streamline asset increase case of closing business. 6. Promote economic growth hindered by infrastructural bottlenecks and help to reduce regional disparities by asset development by private entity. 7. Employment, job creation. Government introduced National Monetisation Pipeline for monetization of brownfield infrastructural assets of -

dedicated freight corridor DFC or oil-gas pipeline of IOCL, etc. Need to address issues in NMP as: 1. Proper database of each asset and infrastructural projects. 2. Appropriate pricing while transferring to private sector while ensuring at end of contract asset will be returned. 3. Attract investors as infrastructure has less attraction. 4. Prevent increase of NPA by giving sustainable projects. 5. India has stepped on right direction to monetize assets. Protocols from NMP must be utilized in National Infrastructure Pipeline.