Answer : Asset Monetization in India refers to the process of unlocking the economic value of underutilized public assets to generate new revenue sources. Idea of asset monetisation was first suggested by a committee led by Vijay Kelkar in 2012 on the roadmap for fiscal consolidation.Example : Government transferred operational ownership of six airports (Jaipur, Ahmedabad, Lucknow, Mangalore, Thiruvananthapuram, and Guwahati) across India to private firm in 2023

Objectives:

• Private Sector Efficiency: Introduce private sector efficiency to enhance the economic value of underutilized assets.
• Financial Leverage: Create greater financial leverage through value engineering.
• Risk Allocation: Optimize risk allocation in infrastructure projects.
• Investment Gap: Channelize funds to bridge the investment gap in public infrastructure.

Advantages

• New Revenue Sources:

• Numbers: The National Monetization Pipeline (NMP) launched in 2021 aims to unlock ₹6 lakh crore (US$75 billion) over four years from core infrastructure assets like roads, railways, and airports. This can be crucial for addressing India's infrastructure deficit and funding social development programs.
• Example: In 2022, Adani Ports acquired a controlling stake in Gangavaram Port for ₹10,613 crore (US$1.3 billion), raising immediate funds for the government and future investments for the port operator.

• Employment Generation: Monetization can attract new investments and businesses, creating jobs in construction, operation, and maintenance. NMP estimates 1.5 million job opportunities to be created in the process.

• Improved Efficiency
• Technology and Innovation: Private companies often invest in automation and technology, leading to faster turnaround times, better service delivery, and reduced costs.
• Focus on Core Competencies: Monetization allows the government to focus on core competencies like policymaking and regulations, while leaving specialized operations to private entities with relevant expertise.
• Asset Recycling: Monetization allows the government to unlock value from underutilized assets and reinvest the proceeds in newer, more productive ones. This "asset recycling" can stimulate economic growth and create a virtuous cycle of investment.
• Multiplier Effect in the economy.

Challenges:

• Regulatory Hurdles: Lack of regulatory clarity affects the value realized from monetization.
• Example: The Bharatmala highway project faced delays due to unclear land acquisition policies.
• Monopoly Concerns: Privatization may lead to monopolization and inflation in critical infrastructures. 
• Example : The recent acquisition of six airports by one group (Adani) raised concerns about potential dominance and limited competition in the sector.
• Profit Maximization: Private investors may prioritize profit maximization during the lease period.
• Example : Private train failure in Singapore forced nationalization after chronic breakdowns due to lack of investment in maintenance .
• Consumer Impact: Consumers may bear the cost of utility price increases.
• Example :  Increased toll charges on some privatized highways 
• Substandard Experience: Past attempts at monetizing brownfield assets have faced challenges and poor returns.
• Example : no bidders for nine clusters on Indian railways (2020 bid) due to poor previous experience.

Way Forward:

While asset monetization can unlock funds for India's growth, navigating regulatory hurdles, monopoly concerns, and public sentiment requires a nuanced approach. Streamlining processes, fostering competition, and balancing partnerships with robust safeguards can bridge the gap between revenue generation and public trust. Learning from past experiences and adopting transparent, data-driven strategies hold the key to maximizing benefits and minimizing risks, ensuring a win-win for both development and public well-being.