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Odisha government has signed an MoU with International Finance Corporation (IFC) –a member of the World Bank Group, to support the implementation of the Asset Monetization & Recycling Program (AMRP) for the State. This programme is a part of a wider World Bank Group technical assistance to support the State in monetising existing public sector assets.
The programme will facilitate and accelerate the monetisation process in the State by unlocking the value from large scale public investment in brownfield infrastructure assets and bringing in private sector efficiencies, said a press statement.
IFC will support the state in screening and developing a prioritised list of monetisable brownfield state-owned assets for select sectors that can be further screened to identify and define bankable pilot projects which may be taken to the market to attract private sector investments.
$1.5 trillion needed for infra
Globally, developing countries have been adopting various forms of asset monetisation and asset recycling approach to generate funds for their economies. India’s infrastructure development pipeline has an estimated funding requirement of $1.5 trillion until 2025.
To address this issue and to boost the economy, the Central Government rolled out the National Monetisation Pipeline (NMP). States are also looking at this opportunity and projects in power transmission, energy generation (including renewable energy and large hydro storage projects), highways and transport related land infrastructure assets, warehousing etc. are on the list of pilot projects.
“With the impact of economic shocks limiting fiscal space in many countries, the need for innovation to fund the infrastructure gap, particularly through crowding in private investments, is all the more crucial,” IFC’s India Country Head, Wendy Werner said in the release.
According to Suresh Chandra Mohapatra, Chief Secretary, Odisha, the partnership with IFC will help the State identify assets that can be leveraged to attract more private sector investments. This will help it bridge some of the financing gap, thus improving and upgrading the State’s infrastructure.
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