ASSET MONETISATION - loopholes, shortcomings and benefits. Is it a new name of 'Privatisation'?

 

Finance Minister Nirmala Sitharaman has recently invigorated the voice of Government and introduced the concept of 'Asset Monetisation' to be launched super soon wherein the Government is willing to lease the core assets and earn funds from private players for its management and operation. 

'Asset Monetisation' sounds like a lucrative term. However, has a much more similarity to 'Privatisation'. The Government is prominent in developing the infrastructure, however poor in managing them. The concept will help the Government in getting rid of management of the assets and also to earn some money out of leasing it. Ownership will remain vested with the Government. The plan has been encapsulated towards leasing of brownfield assets. 

They concept may be beneficial however, public may be required to pay double charges to use them. First of all, we all pay taxes for public utilities, secondary we will be paying charges to the private entities managing those assets, for using those assets leading to increase in charges of usage. 

Earlier the petroleum and oil sector was privatised. Companies were given free hand to determine the prices which had lead to tremendous increment in the prices of commodities that is used on daily basis. Similar price hike may be encountered once 'Asset Monetisation' concept is executed. 

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