economics medium True/False

The 'National Monetisation Pipeline' (NMP) involves the outright sale and privatization of loss-making Public Sector Undertakings (PSUs) to private corporations to reduce the fiscal deficit.

  1. True
  2. False

Answer: False

The NMP is strictly about monetizing *brownfield infrastructure assets* (like operational toll roads, power grids, and railway stations), not privatizing corporate PSUs. Under the NMP, the government retains ownership of the core asset but transfers the revenue rights and operational responsibilities to private players for a fixed concession period. The upfront capital raised is then recycled to build new, greenfield infrastructure projects.

Topic Indian Economy - Infrastructure
Exam Relevance UPSC Prelims, SSC CGL
More economics Questions Back to all questions