NITI Aayog

Finance Minister launches the National Monetisation Pipeline

Asset Monetisation programme has taken shape because of the vision of Prime Minister: Finance Minister

NMP estimates aggregate monetisation potential of Rs 6.0 lakh crores through core assets of Central Government

Dated: 23 AUG 2021

Union Minister for Finance and Corporate Affairs, Smt Nirmala Sitharaman, today launched the asset monetisation pipeline of Central ministries and public sector entities: ‘National Monetisation Pipeline (NMP Volumes 1 & 2)’. The pipeline has been developed by NITI Aayog, in consultation with infrastructure line ministries, based on the mandate for ‘Asset Monetisation’ under Union Budget 2021-22. NMP estimates aggregate monetisation potential of Rs 6.0 lakh crores through core assets of the Central Government, over a four-year period, from FY 2022 to FY 2025.

Volumes 1 and 2 of the report on NMP was released today in the presence of Vice Chairman (NITI Aayog), CEO (NITI Aayog), and Secretaries of infrastructure line ministries included under the pipeline—Roads, Transport and Highways, Railways, Power, Pipeline and Natural Gas, Civil Aviation, Shipping Ports and Waterways, Telecommunications, Food and Public Distribution, Mining, Coal and Housing and Urban Affairs—along with Secretary (Department of Economic Affairs) and Secretary (Department of Investment and Public Asset Management).

Union Minister of Finance, while launching the pipeline, said, “The Asset Monetisation programme has taken shape because of the vision of our Hon’ble Prime Minister who has always believed in universal access to high-quality and affordable infrastructure to the common citizen of India. Asset monetisation, based on the philosophy of Creation through Monetisation, is aimed at tapping private sector investment for new infrastructure creation. This is necessary for creating employment opportunities, thereby enabling high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare.” Smt. Sitharaman further enumerated the reforms and initiatives undertaken by the current Government towards accelerated infrastructure development and for incentivizing private sector investments. This included the recent ‘Scheme of Financial Assistance to States for Capital Expenditure’, which incentivizes State Governments to recycle State Government-owned asset for fast-tracking greenfield infrastructure.

“The strategic objective of the programme is to unlock the value of investments in brownfield public sector assets by tapping institutional and long-term patient capital, which can thereafter be leveraged for further public investments,” Vice Chairman, NITI Aayog, said during the launch. He emphasized on the modality of such unlocking, which is envisaged to be by way of structured contractual partnership as against privatization or slump sale of assets. 

NMP is envisaged to serve as a medium-term roadmap for identifying potential monetisation- ready projects, across various infrastructure sectors. CEO, NITI Aayog said, “The NMP is aimed at creating a systematic and transparent mechanism for public authorities to monitor the performance of the initiative and for investors to plan their future activities. Asset Monetisation needs to be viewed not just as a funding mechanism, but as an overall paradigm shift in infrastructure operations, augmentation and maintenance considering private sector’s resource efficiencies and its ability to dynamically adapt to the evolving global and economic reality. New models like Infrastructure Investment Trusts  & Real Estate Investment Trusts will enable not just financial and strategic investors but also common people to participate in this asset class thereby opening new avenues for investment. I hence consider the NMP document to be a criticalstep towards making India’s Infrastructure truly world class.”

NMP is a culmination of insights, feedback and experiences consolidated through multi-stakeholder consultations undertaken by NITI Aayog, Ministry of Finance and line ministries. Several rounds of discussion have been held by NITI Aayog with the stakeholders. The pipeline has been deliberated at length in inter-ministerial meeting chaired by Cabinet Secretary. This is therefore a whole of a government initiative.

Secretaries of all infrastructure ministries affirmed their resolve towards achieving their respective targets set under NMP, working jointly with NITI Aayog and Ministry of Finance.

As part of a multi-layer institutional mechanism for overall implementation and monitoring of the Asset Monetization programme, an empowered Core Group of Secretaries on Asset Monetization (CGAM) under the chairmanship of Cabinet Secretary has been constituted. The Government is committed to making the Asset Monetisation programme, avalue-accretive proposition both for the public sector and private investors/developers, through improved infrastructure quality and operations and maintenance. This is aimed at achieving the broader and longer-term vision of ‘inclusiveness and empowerment of common citizens through best in class infrastructure’.

National Monetisation Pipeline: An Introduction

Union Budget 2021-22 has identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing. Towards this, the Budget provided for preparation of a ‘National Monetisation Pipeline (NMP)’ of potential brownfield infrastructure assets. NITI Aayog in consultation with infra line ministries has prepared the report on NMP.

NMP aims to provide a medium term roadmap of the programme for public asset owners; along with visibility on potential assets to private sector. Report on NMP has been organised into two volumes. Volume I is structured as a guidance book, detailing the conceptual approaches and potential models for asset monetisation. Volume II is the actual roadmap for monetisation, including the pipeline of core infrastructure assets under Central Govt.

Framework

The pipeline has been prepared based on inputs and consultations from respective line ministries and departments, along with the assessment of total asset base available therein. Monetization through disinvestment and monetization of non-core assets have not been included in the NMP. Further, currently, only assets of central government line ministries and CPSEs in infrastructure sectors have been included. Process of coordination and collation of asset pipeline from states is currently ongoing and the same is envisaged to be included in due course.

The framework for monetisation of core asset monetisation has three key imperatives.

This includes selection of de-risked and brownfield assets with stable revenue generation profile with the overall transaction structured around revenue rights. The primary ownership of the assets under these structures, hence, continues to be with the Government with the framework envisaging hand back of assets to the public authority at the end of transaction life.

Estimated Potential

Considering that infrastructure creation is inextricably linked to monetisation, the period for NMP has been decided so as to be co-terminus with balance period under National Infrastructure Pipeline (NIP).

The aggregate asset pipeline under NMP over the four-year period, FY 2022-2025, is indicatively valued at Rs 6.0 lakh crore. The estimated value corresponds to ~14% of the proposed outlay for Centre under NIP (Rs 43 lakh crore). This includes more than 12 line ministries and more than 20 asset classes. The sectors included are roads, ports, airports, railways, warehousing, gas & product pipeline, power generation and transmission, mining, telecom, stadium, hospitality and housing.

Sector wise Monetisation Pipeline over FY 2022-25 (Rs crore)

The top 5 sectors (by estimated value) capture ~83% of the aggregate pipeline value. These top 5 sectors include: Roads (27%) followed by Railways (25%), Power (15%), oil & gas pipelines (8%) and Telecom (6%).

In terms of annual phasing by value, 15% of assets with an indicative value of Rs 0.88 lakh crore are envisaged to be rolled out in the current financial year (FY 2021-22). However, the aggregate as well as year on year value under NMP is only an indicative value with the actual realization for public assets depending on the timing, transaction structuring, investor interest etc.

Indicative value of the monetisation pipeline year-wise (Rs crore)

The assets and transactions identified under the NMP are expected to be rolled out through a range of instruments. These include direct contractual instruments such as public private partnership concessions and capital market instruments such as Infrastructure Investment Trusts (InvIT) among others. The choice of instrument will be determined by the sector, nature of asset, timing of transactions (including market considerations), target investor profile and the level of operational/investment control envisaged to be retained by the asset owner etc.

The monetisation value that is expected to be realised by the public asset owner through the asset monetisation process, may either be in form of upfront accruals or by way of private sector investment. The potential value assessed under NMP is only an indicative high level estimate based on thumb rules. This is based on various approaches such as market or cost or book or enterprise value etc. as applicable and available for respective sectors.

Implementation & Monitoring Mechanism

As an overall strategy, significant share of the asset base will remain with the government.

The programme is envisaged to be supported through necessary policy and regulatory interventions by the Government in order to ensure an efficient and effective process of asset monetisation. These will include streamlining operational modalities, encouraging investor participation and facilitating commercial efficiency, among others. Real time monitoring will be undertaken through the asset monetisation dashboard, as envisaged under Union Budget 2021-22, to be rolled out shortly.

The end objective of this initiative to enable ‘Infrastructure Creation through Monetisation’ wherein the public and private sector collaborate, each excelling in their core areas of competence, so as to deliver socio-economic growth and quality of life to the country’s citizens.

The full report can be accessed here: http://www.niti.gov.in/national-monetisation-pipeline

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DS/AKJ
(Release ID: 1748297)

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 17th August, 2021

PRESS RELEASE

Income Tax Department conducts searches in NCR

The Income Tax Department conducted searches on 16.08.2021 on a company engaged in trading of telecom equipment and installation and servicing of these items for various telecom players in India. Searches were conducted at 5 premises, including the corporate office, residence of foreign director, residence of company secretary, accounts person and the cash handler of a foreign subsidiary company in India.

The search revealed that the purchases of the assessee company were entirely from its holding company. Examination of import bills vis-à-vis sale bills show that there is huge gross profit (approximately 30%) on trading of these items,however, the company has been booking huge losses over the years. It is thus evident that losses are being booked by the company through bogus expenses in respect of services provided by it. Few such recipients have been identified in whose case, substantial expenses have been booked over the years. These entities have been found to be non-existent at their addresses. Moreover, the said entities also do not file their Income Tax Returns (ITRs). More such dubious entities are being examined. It is expected that bogus expenses would run into hundreds of crores over the years.

During the search, incriminating evidence has been detected in Whatsapp chats of the CEO, CFO and other key persons indicating illegal payments to telecom companies. Whatsapp chats also reveal payment of commission to a person based in Australia for purchase of shares of a telecom company in India. These transactions are being examinedfurther. Evidence in the form of electronic data and physical papers, found during the course of the search shows that unaccounted money, running into severalcrores every year, has been brought back into the books in the form of bogus scrap sales, etc.Incriminating documents found from the electronic data of key persons, including theforeign CFO, show that the employees of the company were engaged in illegal currency exchange from Rupee to RMB. They were also found to be engaged in large scale illegal trade of medicines from India to China.

Examination of books of the assessee company shows large discrepancies. It has been found that the company has failed to deduct TDS on provisions made by them for expenses. During F.Y.s 2014-15 and 2015-16 the company failed to deduct TDS on such provisions amounting to more than Rs. 120 crore. The company has claimed expenses of more than Rs. 100 crore on account of provisions created by it for doubtful debts in F.Y. 2017-18. Similarly, expenses of hundreds of crores have been claimed over the years on account of provision for doubtful debts and provision for doubtful loans and advances. Admissibility of such expenses is being examined.

Further, the Assessee company has also declared only 2 bank accounts in its Income Tax Returns(ITRs) despite having around 12 operative bank accounts. Accountability of transactions in other bank accounts is being examined.

Issue of tax liability of hundreds of crores has been identified so far. Unaccounted cash of more than Rs. 62 lakh has been found at the premises. 3 lockers have also been found during the course of the search, which have been placed under restraint. Search operation is still continuing. 

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

LOK SABHA

UNSTARRED QUESTION NO. 2242

TO BE ANSWERED ON MONDAY, 02^nd AUGUST, 2021

SRAVANA 11, 1943 (SAKA)

HIGH VALUE DEPOSITS

2242: SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH:

Will the Minister of FINANCE be pleased to state:

(a)whether the Government is investigating heavy deposits made during 50 days period of demonetisation;

1. if so, the details thereof;
2. whether an investigation is also being done on financial institutions against their high value deposits; and
3. if so, the details thereof along with the status of investigation so far?

ANSWER

MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a) & (b): During demonetisation, large cash was deposited in bank accounts, and it became possible to track the owners of cash. The Income Tax Department (ITD) took a number of prompt actions on those found to be involved in misuse of the scheme of demonetisation. These actions, inter-alia, included the following:

• The Income Tax Department conducted searches in 900 groups during the period November 2016 to March, 2017 leading to seizure of Rs. 900 crores, including cash of Rs. 636 crores and admission of undisclosed income of Rs.7961 crores. During the same period, 8239 surveys were conducted leading to detection of undisclosed income of Rs.6745 crores.
• The cash deposit data was analyzed to identify those persons whose cash transactions did not appear to be in line with their profile. Regular emails and SMS were sent to them for submitting their response online. This exercise promoted voluntary compliance.
• Further, electronic campaign was initiated in case of non-filers depositing cash between Rs 5-10 lakh. Further, 3.04 lakh persons who had deposited cash of Rs. 10 lakh or more but had not filed their return of income till due date of filing returns were identified. Overall, Self-Assessment Tax of more than Rs. 13,000 crores was paid by targeted non-filers.
• In respect of cases where high deposits were made post demonetisation and the corresponding returns of income were not filed, notices u/s 142 (1) of Income Tax Act, 1961 were issued for filing of returns. Assessment orders have been passed making requisite additions in these cases.
• Further, in cases where the Returns of Income were filed by the depositors, the income tax returns and demonetization data were analyzed under Computer Assisted Scrutiny Selection (CASS) and cases were selected for scrutiny on account of various scenarios related to demonetization. After scrutiny, assessment orders have been passed in large number of cases wherein substantial additions have been made.
• In suitable cases, penalties have also been levied.
• It may also be mentioned that because of sustained non-intrusive campaign by the Income Tax Department post demonetization, during F.Y. 2017-18, the net collection of direct taxes increased by 18% at Rs. 10.03 lakh crore as compared to previous year. This was the highest growth in preceding seven F.Y.s. There was also exceptional growth in Personal Advance Tax of 23.4% and Personal Self-Assessment Tax of 29.9% in F.Y. 2017-18 in comparison to F.Y. 2016-17.

Further, Directorate of Enforcement (ED) has registered 9 cases under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA, 2002) and 5 cases under the Foreign Exchange Management Act, 1999 (FEMA, 1999) with respect to heavy deposits made during the period of demonetisation.

(c) & (d): Directorate of Enforcement (ED) has registered one case under the provisions of FEMA, 1999 against a Financial Institution with regard to their high value deposits.

(v) India has entered into information sharing agreement with the USA under the Foreign Account Tax Compliance Act of USA.

(c): Income Tax Department takes appropriate action under relevant laws against the tax evaders. Such action under direct tax laws includes searches, surveys, enquiries, assessment of income, levy of tax, interest, penalties, etc. and filing of prosecution complaints in criminal courts, wherever applicable. The details of prosecution complaints filed during last 5 years by the Income Tax Department under Income Tax Act, 1961 are as under:

 

F.Y.	Prosecution complaints filed in court	Cases compounded	Conviction order passed
2016-17	1252	1208	16
2017-18	4527	1621	75
2018-19	3512	2235	105
2019-20	1226	1410	49
2020-21*	173	537	16

*Figures are provisional.

Further,  more than  107 prosecution complaints have been filed under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

(d): As a result of systematic actions, as on 31.05.2021, the following results have been achieved:

• As on 31.05.2021, assessment orders under section 10(3)/10(4) of the Black Money Act, 2015 have been passed in 166 cases, wherein demand of Rs. 8216 crores has been raised.
• Undisclosed income of Rs. 8,465 crores (approx.) has been brought to tax and penalty of Rs. 1294 crores has been levied in HSBC cases.
• Undisclosed income of Rs. 11,010 crores (approx.) has been detected in ICIJ (International Consortium of Investigative Journalists) cases.
• In the Panama Papers Leaks cases, undisclosed credits of Rs. 20,078 crores (approx.) have been detected.
• In the Paradise Papers Leaks cases, undisclosed credits of Rs. 246 crores (approx.) have been detected.

 

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 3rd August, 2021

PRESS RELEASE

CBDT extends due dates for electronic filing of various Forms under the Income-tax Act,1961

On consideration of difficulties reported by the taxpayers and other stakeholders in electronic filing of certain Forms under the provisions of the Income-tax Act,1961 read with Income-tax Rules,1962 (Rules), Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for electronic filing of such Forms vide Circular No.15/2021 dated 03.08.2021. The details are as under:

(i) The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30^th June, 2021, required to be furnished on or before 15^th July, 2021 under Rule 37BB of the Rules, as extended to 31^st July,2021 vide Circular No.12 of 2021 dated 25.06.2021, may be filed on or before 31^st August, 2021;

(ii) The Equalization Levy Statement in Form No.1 for the Financial Year 2020- 21, which was required to be filed on or before 30^th June, 2021, as extended to 31^st July, 2021 vide Circular No.12 of 2021 dated 25.06.2021, may be filed on or before 31^st August, 2021;

(iii) The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64D for the Previous Year 2020-21, required to be furnished on or before 15^th June, 2021 under Rule 12CB of the Rules, as extended to 15^th July,2021 vide Circular No.12 of 2021 dated 25.06.2021, may be furnished on or before 15^th September,2021;

(iv) The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C for the Previous Year 2020-21, required to be furnished on or before 30^th June, 2021 under Rule 12CB of the Rules, as extended to 31^st July, 2021 vide Circular No.12 of 2021 dated 25.06.2021, may be furnished on or before 30^th September, 2021.

            Further, considering the non-availability of the utility for e-filing of certain Forms, the CBDT has decided to extend the due dates for electronic filing of such Forms as under:

(1) Intimation to be made by a Pension Fund , required to be furnished on or before 31^st July,2021 under Rule 2DB of the Rules, may be furnished on or before 30^th September, 2021;

(ii) Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30^th June,2021, required to be furnished on or before 31^st July,2021 as per Circular No.15 of 2020 dated 22.07.2020, may be furnished on or before 30^th September, 2021.

CBDT Circular No. 15/2021 in F.No.225/49/2021/ITA-II dated 03.08.2021issued today, is available on www.incometaxindia.gov.in. It is also clarified vide the said Circular that the above forms, e-filed, after the expiry of time limits provided as per Circular No.12 of 2021 dated 25.06.2021 or as per the relevant provisions, till date of issuance of said Circular, will stand regularised accordingly.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT