The strategic objective of Asset Monetization Programme may be explained as:

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APPSC Group-1 (Prelims) Exam Official Paper-I (Held On: 17 Mar, 2024)
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  1. An initiative to unlock the value of investments in private sector assets by utilizing public sector capital.
  2. Involving an indefinite period license/lease of an asset, owned by the government or a public authority, to a private sector entity.
  3. Facilitating an opportunity for public asset owners to use new financial structures by utilizing capital from private sector investors.
  4. Offering an alternative mechanism to the PPP model.

Answer (Detailed Solution Below)

Option 3 : Facilitating an opportunity for public asset owners to use new financial structures by utilizing capital from private sector investors.
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The correct answer is Facilitating an opportunity for public asset owners to use new financial structures by utilizing capital from private sector investors.

Key Points

  • The Asset Monetization Programme aims to unlock the value in public assets by leveraging private investment.
  • It allows public asset owners to access new financial structures and investment opportunities.
  • The program is designed to attract private sector capital, thereby increasing the efficiency and productivity of public assets.
  • The strategic goal is to generate additional revenue for the government and ensure better utilization of public assets.

Additional Information

  • Asset Monetization:
    • Asset monetization involves converting physical or non-physical assets into economic value. It is a strategy to unlock the value of underutilized or idle assets.
    • This process can include the sale, lease, or other financial mechanisms to generate revenue from existing assets.
  • Public-Private Partnership (PPP) Model:
    • PPP is a collaborative investment model between the public sector and private entities for the purpose of funding and operating projects.
    • In a PPP model, risks and returns are shared between the public and private parties based on their contribution and agreed terms.
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