The main features of asset monetisation announced are (1) assets are only leased out, the ownership of assets will remain with the Government. (2) Enables infrastructure development with creation of assets through PPP model (3) Aims multiplier effect on investment, growth, employment and revival of credit flow.
The major share of asset monetization amount is expected from the two public sector enterprises such as railways and roads.
In the year 2022, only 14.76 per cent of the asset monetisation value with an absolute amount of Rs.88190 crore is expected.
Though there is higher target of disinvestment in recent years , the share of capital expenditure in total expenditure  has not been  increased substantially, in fact it reduced in 2017-18
Another major implication of asset monetization is that there are chances of wealth accumulation in the hands of a few corporates. Small businesses might not be able to compete with those big giants and they will be thrown out from infrastructure development scheme.

Introduction
Union budget 2021-22 highlighted the importance of monetizing operating public infrastructure assets for new infrastructure construction. The budget 2021-22 has suggested to prepare for a "National Monetisation Pipeline (NMP)" for infrastructure creation and has recommended to start "Asset Monetisation Dashboard' for generating additional resources for infrastructure development. Based on the same, the Government of India announced asset monetization of around 6 lakh crores on selected sectors. The capital expenditure which creates employment, especially for the poor and unskilled, has a high multiplier effect, this enhances future productive capacity of the economy and has a potential to lead to higher rate of economic growth. In short, capital investment acts as a vital engine of growth. It is estimated that in advanced economies, $1 million of spending can generate an average of 3 jobs in schools and hospitals and over 6 jobs in the energy sector, assuming intermediate labour mobility and labour intensity levels. On the other hand, in low income developing countries, the estimates are much larger and range and amount to creating atleast 16 jobs in water and sanitation. In other words, each unit of public infrastructure investment creates more direct jobs in electricity in high income countries and more jobs in water and sanitation in low income countries. (Mariano Moszoro, 2021). This paper attempts to look into the asset monetization plan of union government and its implication on capital investment in India.
Asset monetisation and its features
The main features of asset monetisation announced are (1) assets are only leased out, the ownership of assets will remain with the Government. (2) Enables infrastructure development with creation of assets through PPP model (3) Aims multiplier effect on investment, growth, employment and revival of credit flow. Through asset monetisation, union government decided to monetise the assets of selected sectors which are shown in Table 1.
 

Table 1. Sector wise national asset monetisation amount and  sectoral share (in crore)

The major share of asset monetization amount is expected from the two public sector enterprises such as railways and roads. Around 52.33 per cent of total monetization value is generated from these two sectors. The Finance minister stressed that the ownership of land is to be kept within the government.
Approach to asset monetization
Different approaches were suggested to estimate the indicative value of the monetisation pipe line. They are (i) Market approach,( ii)Capex approach, (iii) Book value approach and (iv) Enterprise value approach (EV Appraoch). Under Market value approach indicative value of assets is determined based on comparable market transactions, wherever, for the identified asset values. The Capex approach is considered for asset classes that may be monetised through PPP based models envisaging capex investment by private sector. The Book Value approach is considered in case of asset classes where information on comparable market transactions or estimated capex investment is not available. The Enterprise value approach is considered for assets where information in existing revenue stream is available or can be reasonably projected based on assumptions and /or available data on prevailing tariff for an asset/asset class. Suggested approach to asset monetisation for different category is depicted in Table 2.

Table 2. Approach to  asset monetisation

Union government has announced different approaches for asset monetisation of different sectors. The monetisation value approach for Aviation, ports, warehousing, telecom (partly), railways (partly) mining , urban housing development, stadiums will use capex method. Market approach is being adopted for Roads and power transmission. Book value approach will be followed in the case of power generation.
It is seen that the asset monetization programme is intended for raising resources to meet the long run capital investment plans. In the year 2022, it is expected to generate only 14.76 per cent of the total monetization value. The balance amount will be generated in the subsequent years from 2023 to 2025(table 3). Since the asset monetisation announced is a long run strategy , the benefits will be reaped in a phased manner. In the year 2022, only 14.76 per cent of the asset monetisation value with an absolute amount of Rs.88190 crore is expected.
 

Table 3. Year wise monetisation pipeline  over 2022 to  2025

Disinvestment status
The efficacy of asset monetization plan of the union government is viewed in the background of disinvestment status. The history of disinvestment of union government shows that the generation of funds from disinvestment is not provided a rubicund picture. The gap between actual realization of funds and budget estimate of disinvestment is hefty. This is understood from table 4.
 

Table 4. Disinvestment in India from 2011-12 to 2021-22 (in crore)