PIB Summary- 21th June, 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

National Monetisation Pipeline

Context

According to a recent statement by NITI Aayog, the government has monetized assets valued at Rs 3.85 lakh crore under the National Monetization Pipeline over the first three years, covering the financial period from 2021-22 to 2024-25.

National Monetisation Pipeline (NMP):

• The NMP outlines a comprehensive plan to leverage core assets of the Central government through leasing in various sectors, including roads, railways, power, oil and gas pipelines, telecom, and civil aviation.
• The primary objective is to unlock a total monetisation potential of Rs 6-lakh crore over a four-year period (FY 2022-25).

Scope and Inclusions:

• Monetisation focuses solely on core assets, excluding non-core assets disinvestment.
• Currently encompasses assets from central government line ministries and Central Public Sector Enterprises (CPSEs) in infrastructure sectors.

Expansion Plans:

• The government is actively working on expanding the scope of the NMP by coordinating with states to include assets at both central and state levels.
• The process involves transferring the monetisation of non-core assets, including land, real estate, and infrastructure, from the Department of Investment and Public Asset Management (DIPAM) to the Department of Public Enterprises (DPE) within the Ministry of Finance.

Strategic Alignment:

• The NMP aligns strategically with the National Infrastructure Pipeline (NIP), which aims at investments totaling Rs 111 trillion in six years through FY25.
• The timeline for the NMP is synchronized with the remaining period under the NIP, ensuring cohesive infrastructure development.

Need and Significance of National Monetisation Pipeline (NMP):

• Overcapitalisation Challenges: Some projects experience time overruns and increased costs, making them financially unviable at launch.
• Inefficient Resource Utilization: Government infrastructure projects often lack optimal input-output ratios, leading to overcapitalisation.
• Resource Optimization Through NMP: Aims to introduce private sector efficiency and market-driven approaches for better resource alignment.
• Coordination Challenges: Inter-ministerial and inter-departmental coordination issues contribute to delays and inefficiencies.
• Private-Public Collaboration: Encourages collaboration between the public and private sectors for streamlined infrastructure development.
• Addressing Governance Issues: Targets issues like reluctance to implement labour reforms, poor decision-making, and ineffective governance.

Significance of NMP:

• Economic Boost and Employment: A groundbreaking initiative expected to boost the economy, generate employment, and enhance competitiveness.
• Integration with PM Gati Shakti: Aligned with PM Gati Shakti, fostering holistic and integrated infrastructure development in India.
• Synergy Between Initiatives: Mutual reinforcement between NMP and PM Gati Shakti contributes to overall economic growth.
• Unlocking Idle Capital: Advocates unlocking capital from underperforming government assets, promoting financial efficiency.
• Reinvestment in Infrastructure: Envisages reinvesting funds from monetisation into new projects and asset augmentation, including greenfield infrastructure.

Challenges Associated with National Monetisation Pipeline (NMP):

• Double Charges Concerns: Taxpayers express worry about facing additional costs for utilizing assets after funding their creation.
• Balancing Public and Private Involvement: Navigating perceived duplication of charges, a challenge in balancing public investment and private asset management.
• Vicious Cycle of Asset Monetization: Concerns about creating assets and subsequently monetizing them when they become government liabilities.
• Capacity Underutilization in Infrastructure: Challenges include low capacity utilization in gas and petroleum pipeline networks and regulated tariffs in the power sector.
• Investor Interest and Stakeholder Complexity: Low investor interest in national highways below four lanes and complexity arising from multiple stakeholders in entities.
• Monopolization Risks: Potential for monopolization, especially in highways and railway lines, raising concerns about reduced competition and increased costs.

e-SHRAM Portal

Context

The Indian delegation to the 112th International Labour Conference (ILC) led by the Secretary, Ministry of Labour & Employment showcased the e-Shram portal and its present integrations and achievements during the sidelines of the ILC at Geneva, Switzerland.

About the E-Shram Portal

• With the help of the E-Shram Portal, the government aims to register 38 crore unorganized workers, such as construction labourers, migrant workforce, street vendors and domestic workers, among others.
• The workers will be issued an e-Shram card containing a 12-digit unique number, which, going ahead, will help in including them in social security schemes.
• The government had earlier missed deadlines for creating the database, inviting criticism from the Supreme Court.
• Targeted identification of the unorganized workers was a much-needed step and the portal which will be the national database of our nation builders will help take welfare schemes to their doorstep, who are the builders of our Nation.
• Targeted delivery and last mile delivery, has been a major focus of the schemes of government of India and the National Database of Unorganised workers (E-Shram portal) is another key step towards that.