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Topic: Investment models.
4. What is National Monetisation Pipeline (NMP)? Critically analyse its potential in building back better with private investment in infrastructure. (250 words)
Difficulty level: Moderate
Reference: The Hindu
Why the question:
The Finance Minister unveiled the National Monetisation Pipeline (NMP) making progress on one of the key promises held out in Union Budget 2021. Financing the National Infrastructure Pipeline’s ambitious outlay of Rs 111 lakh crore requires an out-of-the-box approach.
Directive word:
Critically analyze – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a balanced judgment on the topic.
Structure of the answer:
Introduction:
Begin by writing about National Monetisation Pipeline (NMP) its aims and objectives.
Body:
In the first part, write about the various features of National Monetisation Pipeline (NMP).
Next, write about the potential benefits that the government will accrue from the NMP – revenue, improve on efficiency of use of assets, addition of gross savings in the economy etc.
Write about the potential challenges to the newly proposed NMP. Lack of identifiable revenues streams in various assets, absence of dispute resolution mechanism etc.
Conclusion:
Conclude by writing a way forward.
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