Centre could refund costs to encourage asset monetisation by states

The NITI Aayog and DIPAM are considering a proposal to incentivise states for the costs involved in monetising and privatising assets

The central government may use the 'challenge method’ to nudge states to monetise their assets like state highways and privatise their public sector undertakings (PSUs), according to a senior government official. The NITI Aayog and the Department of Investment and Public Asset Management (DIPAM) are considering a proposal to incentivise states for the costs involved in monetising and privatising assets through central grants.
 
States with extensive lists of assets would be shortlisted, and be incentivised by reimbursing the cost involved in monetising their assets thro­ugh central grants, said the official.
 
According to the challenge method being discussed, three