Nirmala Sitharaman: Asset Monetisation Not a Substitute for Disinvestment

Photo: PTI

Finance Minister Nirmala Sitharaman, who presented the Union Budget yesterday, clarified that the asset monetization plan is not a replacement for disinvestment. She explained that asset monetization has been a long-standing process and will continue, but it is different from selling off public assets.

She emphasized, "Asset monetization is not the same as disinvestment. We have been monetizing assets and will keep doing so. In the second phase of the plan, we aim to reinvest Rs 10 lakh crore into new projects. If there is an asset that we want to monetize with a private company, it does not mean we are selling it. The ownership will stay with the government. The revenue we get will be reinvested."

Ms. Sitharaman also mentioned that the government has not abandoned the idea of disinvestment. She added, "There is still talk about disinvestment too."
The Finance Minister spoke about how Public Sector Undertakings (PSUs) are helping create more assets. She explained that although PSUs are becoming more professional, they cannot often assess their market value. The government is working to help PSUs improve the value of their assets. "Our budget also focuses on addressing urban challenges," she said.

On Saturday, Ms. Sitharaman announced the launch of the second Asset Monetisation Plan, which will run from 2025 to 2030. This plan aims to raise Rs 10 lakh crore by monetizing government-owned assets, and the money raised will be used for building new infrastructure projects. To ensure the plan's success, the government will also improve regulatory and fiscal measures.

In addition to this, the government has proposed Rs 1.5 lakh crore in interest-free loans to states. These loans, which will be given for a period of 50 years, are meant to boost capital spending in states and encourage them to make improvements in their infrastructure.

Feb. 2, 2025 {{ Blogdetails.schedule_date|time }} 484

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