Under the Rs 6 lakh crore-National Monetisation Pipeline (NMP), announced by Finance Minister Nirmala Sitharaman, the Centre said the indicative monetisation value of these two national stadiums and two regional centres in FY 22-25 will be Rs 11,450 crore.
“The assets considered for monetisation during FY 2022-2025 cover 2 national stadiums (JLN and one more national stadium to be identified) and 2 SAI regional centres (at Bangalore and Zirakpur),” the NMP report of the Niti Aayog said.
The total potential asset base considered are the assets under the Sports Authority of India (SAI) under the aegis of the Ministry of Youth Affairs and Sports.
The mode of monetisation for the identified assets will be Public Private Parternship (PPP)-based concessions on Operations, Management and Development Agreement (OMDA) model.
The assets are largely managed under the SAI and categorised into three broad categories – stadiums, regional centres and academic institutions.
“The focus of monetisation is on the stadiums and regional centres,” the report said. There is a pressing case for PPPs in sports’ infrastructure development in India to augment and maintain sports facilities and for tapping private sector efficiencies in management of infrastructure, it added.
An integrated multi-use sports infrastructure development model, focusing on optimisation of sports facilities by hosting sporting and non-sporting events, upgrading sports infrastructure technology and mixed-use urban development, can drive the provision of world class sports infrastructure.
While the award of the four assets is planned in a phased manner over 2021-22 and 2022-23, the actual capex may take place over a 3-4 year period, the report said.
Further, any concession fee, upfront premium and revenue share payments to authority would be over and above this indicative monetisation value and will be discovered based on market testing with transaction.
The total value of assets considered for monetisation is estimated at Rs 11,450 crore for FY 2022-2025, with capex phasing as Rs 1,650 crore in FY 2022, Rs 2,100 crore in FY 2023, Rs 3,200 crore in FY 2024 and Rs 4,500 crore in FY 2025.
“Jawaharlal Nehru (JLN) Stadium in New Delhi is expected to be a pioneer in creating a financially sustainable sporting model in India through an OMDA-based PPP concession agreement for integrated development with shared usage of sports facilities,” the report said.
There is a pressing need for financial sustainability in sports and to explore mixed-use areas that are connected and accessible to promote sporting culture.
“Hence, the PPP framework is being explored to tap private sector efficiencies in design and management, which can revitalise the facilities and optimise usage,” it said.
As per the report, the indicative capex investment for JLN Stadium is Rs 7,853 crore.
It also suggested that a concession period of 30 years may be explored, extendable by another 30 years subject to asset life and viability considerations. Sports stadia accounts for nearly 2 per cent share in the overall NMP in value terms.
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