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Raising of Asset Monetisation Target

Raising of Asset Monetisation Target

Medium⏱️ 6 min read✓ 95% Verified
economy

📖 Introduction

<h4>Increased Asset Monetisation Target for FY25</h4><p>The <strong>NITI Aayog</strong> has significantly raised the <strong>asset monetisation target</strong> for the fiscal year <strong>2024-25 (FY25)</strong>. This move underscores the government's continued focus on leveraging public assets for revenue generation.</p><p>The target has been increased by <strong>₹23,000 crore</strong>. This upward revision brings the new target to a substantial <strong>₹1.9 trillion</strong> for FY25.</p><div class='info-box'><p><strong>FY25 Asset Monetisation Target:</strong></p><ul><li><strong>Original Target:</strong> (Implied lower than current)</li><li><strong>Increase:</strong> <strong>₹23,000 crore</strong></li><li><strong>Revised Target:</strong> <strong>₹1.9 trillion</strong></li></ul></div><h4>National Monetisation Pipeline (NMP) Context</h4><p>This revised target for FY25 brings the <strong>NITI Aayog</strong> closer to achieving the overarching goal set under the <strong>National Monetisation Pipeline (NMP)</strong>. The NMP is a strategic initiative aimed at unlocking value from underutilized public sector assets.</p><p>The <strong>NMP</strong> had set an ambitious overall target of <strong>₹6 trillion (₹6 lakh crore)</strong>. This target was established for a four-year period, specifically from <strong>FY 2022 to FY 2025</strong>.</p><div class='info-box'><p><strong>National Monetisation Pipeline (NMP) Overview:</strong></p><ul><li><strong>Overall Target:</strong> <strong>₹6 trillion</strong> (₹6 lakh crore)</li><li><strong>Duration:</strong> <strong>Four-year period</strong> (FY 2022-25)</li><li><strong>Objective:</strong> To generate revenue by monetising brownfield infrastructure assets.</li></ul></div><div class='exam-tip-box'><p><strong>UPSC Insight:</strong> Understanding the difference between <strong>asset monetisation targets</strong> (annual) and the overall <strong>NMP target</strong> (multi-year) is crucial. Questions may focus on the rationale, implementation, and challenges of the NMP, often linking it to infrastructure funding and fiscal policy.</p></div>
Concept Diagram

💡 Key Takeaways

  • •NITI Aayog increased FY25 asset monetisation target by ₹23,000 crore to ₹1.9 trillion.
  • •This moves closer to the National Monetisation Pipeline's (NMP) overall ₹6 trillion target (FY22-25).
  • •Asset Monetisation involves converting underutilized assets into revenue-generating forms.
  • •The NMP was launched in August 2021 to systematically unlock value from brownfield infrastructure assets.
  • •It aims to fund new infrastructure, improve fiscal health, and boost private sector participation.

🧠 Memory Techniques

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📚 Reference Sources

•NITI Aayog reports on National Monetisation Pipeline (general knowledge)
•Ministry of Finance official statements (general knowledge)