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Economics • Indian EconomyMedium

What is the primary purpose of the 'National Monetisation Pipeline (NMP)' in India?

A. To print additional currency notes to fund infrastructure deficits.
B. To unlock value from brownfield public infrastructure assets by engaging private sector participation.✓ Correct Answer
C. To privatize all loss-making public sector banks within three years.
D. To nationalize private coal mines and power distribution companies.

💡 Solution & Explanation

The National Monetisation Pipeline focuses on unlocking capital from brownfield public infrastructure assets by leasing operational rights to private sector partners without relinquishing government ownership. This initiative aims to generate fresh financial resources for infrastructure creation rather than privatizing loss-making banking institutions or nationalizing private industries. Asset monetisation is a key strategy in the Union Budget framework to bridge fiscal gaps through private participation.

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