Govt to formulate streamlined approval process for PPP projects, core infra asset monetisation

Finance Minister Nirmala Sitharaman on Monday said new streamlined approval process for PPP projects and monetisation of core infra assets will be formulated, which will help fast-track asset monetisation by CPSEs. Announcing a set of economic relief measures, she said the current process was long and required multiple approvals for public private partnership (PPP) projects.

The new policy for appraisal and approval of PPP proposals and monetisation of core infrastructure assets, including through InvITs, is aimed at ensuring speedy clearance of projects to facilitate private sector’s efficiencies in financing construction and management of infrastructure.

“This will help to move ahead with the budget proposal of asset monetisation,” Sitharaman added.

Expenditure Secretary T V Somanathan said the details of the policy would be announced by the Department of Economic Affairs.

In 2021-22 Budget speech, Sitharaman had announced that monetising operating public infrastructure assets is a very important financing option for new construction.

“A National Monetisation Pipeline of potential brownfield infrastructure assets will be launched,” she had said.

Some of the core infrastructure assets that will be covered under the asset monetisation programme are NHAI-operated toll roads, transmission assets of PGCIL, oil and gas pipelines of GAIL,

and HPCL, AAI airports in Tier II and III cities.

Others to be included in this programme are railway infrastructure assets, warehousing assets of central public sector enterprises (CPSEs) such as Central Warehousing Corporation, NAFED and sports stadiums.