Cash-strapped Karnataka govt eyes asset monetisation under new PPP policy

The revision saw the inclusion of asset monetisation in the PPP policy, which outlined the various methods to generate revenue from infrastructure assets. Among the assets that could be monetised include roads, ports, tourist destinations, and agri-processing plants, among others.

Speaking to the Indian Express, Dr N Manjula, Secretary to Government, Infrastructure Development, Ports and Inland Water Transport Department, which is the nodal agency for all infrastructure projects undertaken through PPP mode or asset monetisation, said that the income generated by asset monetisation will be based on the number of projects taken up. “We have not estimated it yet. But PPP has huge potential to generate revenue,” she said.

The new policy is in tune with the Centre’s policy on PPP projects. The asset monetisation guidelines included in the Central policy were also added. The 2025 policy simplifies various procedures required to implement PPP projects, Manjula further said.

Among other changes are the introduction of operational guidelines which provide a road map on the lifecycle of a PPP project, its process flow, and action required at each stage of implementation. Sector-specific incentives, which allow infrastructure projects to avail incentives from policies of a particular sector, are also part of the 2025 policy.

Individual departments will also have to formulate a strategy to develop a multi-year roadmap and create an annual action plan for PPP infrastructure projects. The policy mandates that 90 per cent of the required land should be available for a project at the time of tendering. However, exceptions may be granted on a case-by-case basis by the State Level Single Window Agency or the State High-Level Clearance Committee, it said.

The cash-strapped Siddaramaiah government has been exploring various asset monetisation options since assuming power in May 2023. Last year, the Rural Development and Panchayat Raj department started work on a policy to monetise assets owned by gram panchayats in Karnataka. In September, the government set up an expert committee under retired IAS officer K P Krishnan to analyse the potential for asset monetisation, particularly by leveraging the land in and around Bengaluru.