Question
What is one word for the government transferring
revenue rights to private parties for a specified transaction period in return for money?Solution
In a monetisation transaction, the government transfers the revenue rights to private companies for a specific period in return for upfront money, a revenue share, and commitment of investments in the assets. Recently, the government of India has launched the National Monetisation Pipeline (NMP). The NMP estimates aggregate monetisation potential of Rs 6 lakh crores through core assets of the Central Government, over a four-year period, from FY 2022 to FY 2025.
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