Region: South Asia
Country: India
Topic: Asset Recycling
Keywords: Asset Recycling
Document Link(s):
Document Summary:
India's asset monetisation, based on the philosophy of Creation through Monetisation, is aimed at tapping private sector investment for new infrastructure creation. This is necessary for creating employment opportunities, thereby enabling high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare.
Document Details:
The framework for monetisation of core asset monetisation has three key imperatives.
- Monetization of 'Rights' not 'Ownership', Assets handed back to the government at the end of transaction life
- Brownfield de-risked assets, stable revenue streams
- Structured partnerships under defined contractual frameworks with strict KPIs & performance standards
This includes selection of de-risked and brownfield assets with stable revenue generation profile with the overall transaction structured around revenue rights. The primary ownership of the assets under these structures, hence, continues to be with the Government with the framework envisaging hand back of assets to the public authority at the end of transaction life.
Updated: February 16, 2023