Rs 15,000 crore expected to be monetised through urban real estate; close to Rs 29,000 crore is estimated from monetising warehouses and around Rs 11,450 crore from stadiums.
"All-in-all, NMP is a timely move and looks to be a good step towards the government’s vision of reducing its focus from the non-core businesses and improve its fiscal position," said Anuj Puri, chairman - ANAROCK Property Consultants.
“The National Monetisation Pipeline is being closely tracked by global sovereign wealth funds, pension funds and infrastructure funds. As the underlying assets are operating, provide visibility of a regular cashflow stream and do not have development and construction risk, the assets are well suited for yield investors,” said Srishti Ahuja, Partner, Strategy & Transactions, EY India.
Further, given that some assets will have a revenue growth trajectory (eg: toll roads and airports) and some assets will have a fixed revenue profile (eg: transmission assets), the various pools of assets will have the ability to attract a diverse set of global investors.
The success of the programme, however, will also be dependent on the contractual framework. If the concessions are long term (at least 15 years) and if the risk allocation framework assigns risks in proportion to the underlying asset returns, the interest will be higher vis-à-vis a scenario where the two are misaligned, as an instance, where the investors bear the risk of capex approvals/capacity augmentation but their returns are capped, she said.
The aggregate asset pipeline under NMP over the four-year period, FY 2022-2025, is indicatively valued at Rs 6 lakh crore. The estimated value corresponds to around 14 percent of the proposed outlay for the Centre under NIP (Rs 43 lakh crore).
This includes more than 12 line ministries and more than 20 asset classes. The sectors included are roads, ports, airports, railways, warehousing, gas and product pipeline, power generation and transmission, mining, telecom, stadium, hospitality and housing.
