Transfer of Infrastructure Assets to Monopoly Capital with the Neo-Liberal Tool of ‘ Asset-Monetization ’
‘ Creation through Monetization ’, the theoretical slogan for the monetization of revenue generating brownfield infrastructure assets by leasing out to private players , has been announced proudly by our Finance Minister Nirmala Sitharaman on August 23 rd 2021 . The central government specifies it as a great innovation in the history of budgetary revenue ‘ owing to its ability to mobilize funds without losing ownership rights on the assets , without imposing any additional taxes and without taking any loans ’. Moreover , the government also says that this programme facilitates the recycling of key infrastructure assets and also taps private sector efficiencies in operations and management of infrastructure .
The government continuously disseminates the ‘ benefits ’ associated with the ‘ Asset-Monetization ’. In this context , Niti Aayog prepared and released two volumes describing the details of the pipeline . The first instalment of ‘ Asset-Monetization ’, to monetize brown field infrastructure assets as high as Rs . 6 lakh crores , will continue for four years from 2021 to 2025 . The current year target is to the tune of Rs . 88,000 crores and the lease period will be 30 years . It is known to all about the serious effects of Covid-19 pandemic which threw the lives and livelihoods of majority into further critical conditions . Even , the Economic Survey , 2021 clearly mentioned it . But this serious issue became a non-issue for the government and shows the State ’ s disconnection from the People ’ s welfare . The policies that throw the lives of majority into miserable conditions are being powerfully popularized as heroic and boldsteps . The government used the context of disastrous Covid-19 pandemic to hurriedly formulate and establish all the relevant questionable policies regarding the ‘ Asset-Monetization ’.
October - 2021
It is also hastening the process of identifying brown field infrastructure assets in the country , identifying how many could attract Monopoly Capital with high revenue possibilities , recognising the assets that can be rented out immediately , formulating the concessions and incentives that appeal to Monopoly Capital and moving amendments needed for the existing laws . This clearly reveals the fact that the miserable lives of people are not at all an issue for the government as it is totally disconnected from the People ’ s welfare . In fact , the People ’ s crisis is an opportunity for the government to formulate and implement pro-corporate , anti-people policies as quickly as possible . Because , the people are totally distracted to resist them . It is appropriate to quote Naomi Klein , the Canadian author of the book ‘ The Shock Doctrine , the rise of Disaster Capitalism ’ wherein she explains the behaviour of the governments in this way- wait ’ for crisis , declare extraordinary policies , suspend some or all democratic norms and push corporate wish list through as quickly as possible ’. This can be clearly seen in the process of pushing ‘ Asset Monetisation ’ programme . Moreover , it is part and parcel of the process of transferring entire wealth of our nation to Powerful Monopoly Capital in the shortest possible time . Therefore , progressive organisations are seriously protesting this organised loot and legalised plunder .
In fact , ‘ Asset Monetisation ’ is a new , innovative Neo-liberal policy tool strongly formulated by the Comprador Bourgeoisie governments to transfer very crucial infrastructure assets to Monopoly Capital so as to strengthen crony capitalism . The creation of relevant basis for this tool was started as early as in 2014 . Though the present government abolished planning commission in the same
Prof . Thota Jyothi Rani
year , it is functioning in a more planned and systematic way with the strong aim of transferring entire wealth of our nation to Monopoly Capital .
What are the Government Actions to Transfer Infrastructure Sector to Monopoly Capital ?
The process of strengthening Monopoly Capital in infrastructure sector which is pivotal for internal safety , security and development , has been started as early as in 2014 . The initiation of ‘ Infrastructure Investment Trusts ’ [ InvITs ] is part of it . These trusts will make investments in infrastructure projects . They utilises as high as 80 % of mobilized funds on brown field infrastructure assets and 20 % on the projects which are at the stage of construction . The infrastructure assets that are already existing are known as Brownfield Infrastructure while Greenfield are those new ones that have to be built from the ground up . The present Asset Monetisation will lease out these brownfield infrastructures . Though this programme is declared on August 23 , 2021 , the foundation was created in 2014 itself . Further , Kelkar Committee Report , 2015 , recommends ‘ Asset- Monetization ’ as the best alternative to Public-Private Partnership . Thus , it gives a theoretical basis for the lease programme .
The Real Estate Investment Trusts [ REITs ] have been started in 2019 . The government stated that InvITs and REITs play a crucial role in taking brownfield infrastructure on lease . It proposed abolition of capital gains tax for these trusts to attract investors . Moreover , the shareholders who receive dividends should pay Income Tax while the trust itself is exempt from paying tax . To attract private investments for ‘ Asset-Monetization ’, the government has also proposed to
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