Economics • Indian EconomyHard
What is the primary objective and structural mechanism of the National Monetisation Pipeline (NMP) launched by the Government of India?
A. To sell ownership rights of strategic public sector manufacturing units to private conglomerates permanently
B. To unlock value from brownfield public infrastructure assets by leasing them to private investors without transferring asset ownership✓ Correct Answer
C. To issue sovereign gold bonds to domestic households in exchange for idle gold reserves
D. To nationalize private commercial banks facing high non-performing asset burdens
💡 Solution & Explanation
The National Monetisation Pipeline focuses on unlocking value from underutilized brownfield public infrastructure assets such as highways, railways, pipelines, and power grids through leasing and concession agreements. Ownership of the underlying assets remains with the government, and assets are returned to public control after concession periods end. The capital generated is reinvested in greenfield infrastructure creation across the country. Asset recycling ensures efficient utilization of public capital.
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