SHIKHAR MAINS 2022 - DAY 15 Model Answer English
Q1. संपत्ति मुद्रीकरण, बुनियादी ढांचे में मूल्य निर्माण की कुंजी है। हाल ही में शुरू की गई राष्ट्रीय मुद्रीकरण पाइपलाइन के आलोक में इस कथन पर चर्चा कीजिए।
Asset Monetisation, holds the key to value creation in infrastructure. Discuss the statement in light of the recently launched National Monetisation Pipeline.
Approach -
• Write about the National Monetization Pipeline.
• Write the features of National Monetization Pipeline and explain that it will lead to infrastructure development.
• Give appropriate conclusions explaining the challenges of the National Monetization Pipeline and the way forward.
Answer -
Recently, the Government of India has launched the 'National Monetization Pipeline' (NMP). According to the estimates of the NMP, the core assets of the central government in the four-year period from FY 2022 to FY 2025 have a total monetization potential of Rs 6 lakh crore. The plan is in line with the Prime Minister's strategic disinvestment policy, under which the government will maintain a presence in only a few specific sectors and the rest will be opened up to the private sector.
National Monetization Pipeline:
• It aims to involve the private sector in brownfield projects and transfer revenue rights to them, although the ownership of the projects will not be transferred, as well as the capital generated through it will be used to build infrastructure across the country.
• The primary function of the NMP is to provide a clear framework for monetization and to prepare a list of assets available for monetization to potential investors.
• Monetization of existing public infrastructure assets was recognized as a major instrument for financing sustainable infrastructure under the Union Budget 2021-22.
• At present, only the assets of Central Government Ministries and Central Public Sector Enterprises (CPSEs) have been included under this.
• The government has clarified that brownfield properties are those assets which have been deemed 'risk free' by the government and hence private investment is being encouraged.
• Road, railway and power sector assets will comprise more than 66% of the total estimated value of the assets to be monetized, apart from telecommunications, mining, aviation, ports, natural gas and petroleum products pipelines, warehouses and stadiums.
• In terms of annual phasing out by value, 15% of the assets will be monetized in the current financial year with a nominal value of Rs.0.88 lakh crore in the same financial year.
• The 'National Monetization Pipeline' will be implemented along with the Rs 100 lakh crore 'National Infrastructure Pipeline' (NIP) announced in December 2019.
• The estimated amount to be raised through monetization is about 14% of the Centre's proposed outlay of Rs 43 lakh crore under the 'National Infrastructure Pipeline'.
• The 'National Infrastructure Pipeline' will provide a positive outlook on infrastructure projects that will help create jobs, improve livelihoods and ensure equitable access to basic infrastructure for all, making development more inclusive. This mainly includes economic and social infrastructure projects.
• Other initiatives related to infrastructure development include 'Special Assistance Scheme for Capital Expenditure of States' and 'Industrial Corridors' etc.
Related challenges:
• Lack of identifiable revenue streams across various assets.
• Slow pace of privatization in government companies including Air India and BPCL.
• Moreover, the least encouraging bids in the recently launched PPP initiative in trains indicate that it is not so easy to attract the interest of private investors.
Asset-specific challenges:
• Low level of capacity utilization in gas and petroleum pipeline networks.
• Regulated tariff in power sector assets.
• Less investor interest for below four lane national highways.
• For example, Konkan Railway has several stakeholders including state governments, who have stake in the company.
Way ahead:
Implementation is the key to success: The government has tried to address many challenges in the NMP framework due to infrastructure development, the implementation of the plan is critical to its success. Dispute Redressal Mechanism: In addition, there is a need for an efficient dispute resolution mechanism. Multi-stakeholder Approach: The success of the infrastructure expansion plan will depend on the other stakeholders playing their due role. These include state governments and their public sector enterprises and the private sector. In this context, the Fifteenth Finance Commission has recommended the establishment of a high-powered inter-governmental group to re-examine the Financial Responsibility Act of the Center and the States.
Q2. ‘गिग अर्थव्यवस्था ' से आप क्या समझते हैं? गिग इकोनामी के प्रमुख लाभों को बताते हुए इसके समक्ष आने वाली प्रमुख चुनौतियों को रेखांकित कीजिये।
What do you understand by ‘Gig Economy’? Highlighting the major advantages of the gig economy, outline the major challenges faced by it.
Approach -
• Begin the answer by defining the Gig economy.
• Then expand the answer by stating the benefits of the Gig economy.
• At the end, conclude the answer by stating the challenges.
Answer -
The Gig economy is defined as a free market system in which independent workers are engaged in temporary positions for short periods of time. It is also known as the "freelancer economy," the "agile workforce," the "sharing economy," or the independent workforce. In India, Delhi has emerged as the top destination for migrant workers joining India's tech-enabled gig economy.
The gig economy is mainly made up of three components-
• Paid freelance workers in the gig economy (those associated with a single task or a project) are in contrast to workers who receive a wage or hourly wage.
• Consumers who require a specific service, for example a ride to their next destination, or delivery of a particular item.
• Companies that engage direct consumer with app-based technology platforms.
Benefits of the gig economy:
This is the era of digitization in which people like to work comfortably anywhere. This has not only enabled the employees to do the work they love, but has also provided freedom to the employers to select the best talent available for the job. Geographical location is no longer a deterrent for tapping the available talent for a project.
• Gig economy is beneficial for business houses. Big business houses can save their resources. For example, various benefits like provident fund, paid leave and office space can be saved.
• The Gig economy provides workers with more options as a result of which people can change their jobs several times until they find a job of their choice.
• The Gig economy allows workers to experiment.
• Gig economy is more profitable as a person can earn extra through freelancing.
• Through the gig economy, a woman can work in harmony in her personal and professional life.
• The Gig economy is also helpful for retirees as it reduces their dependence on their children. And it also helps in staying away from the depression of loneliness.
• Start-ups that have financial constraints survive most of the time because of the benefits they get from freelancers and part-time workers.
Challenges facing the Gig economy;
• There is a lack of job security in the gig economy.
• It is mostly unregulated as it results in less profit than the traditional economic system.
• Gig economy employees will have to bear the cost of upgrading their professional skills. Because the company does not spend on training employees.
• Workers in the Gig economy can be limited at any time.
• Workers are not entitled to pension, gratuity, allowances etc. which are available in full time jobs.
• Due to lack of stable source of income, no basis is available with the bank and financial institution for giving loan.
• In this, priority is given to independent mode of business and profit and the objectives of social welfare may be neglected.
• Some jobs where teamwork is necessary may not require the Gig economy.
Employment generation in India is meager. A section of the population is completely dependent on the Gig economy. Hence there is a need for policies and a strong system to regulate the gig economy. So that workers can benefit by working in this emerging economy.
