National Monetisation Pipeline 2.0 aims to garner Rs 10 lakh cr over 5 years

The NMP 2.0 estimates aggregate monetisation potential of Rs 16.72 lakh crore, including private sector investment of Rs 5.8 lakh crore under the asset monetisation pipeline of Central ministries and public sector entities over the five-year period from FY 2026 to FY 2030, an official statement said.

The National Monetisation Pipeline (NMP) 2.0, released by Finance Minister Nirmala Sitharaman on Monday, targets to mobilise Rs 10 lakh crore over a period of 5 years. The NMP 1.0 was launched in 2021 by Niti Aayog for FY2022-25, targeted to unlock value in brownfield public infrastructure assets, targeting Rs 6 lakh crore through leasing to private investors. NMP 1.0 achieved 89 per cent of its target, amounting to Rs 5.3 lakh crore. The Union Budget 2025-26 announced a target for NMP 2.0 as Rs 10 lakh crore over five years (FY26-30). The NMP 2.0 estimates aggregate monetisation potential of Rs 16.72 lakh crore, including private sector investment of Rs 5.8 lakh crore under the asset monetisation pipeline of Central ministries and public sector entities over the five-year period from FY 2026 to FY 2030, an official statement said. In her address at the launch, Sitharaman complimented all ministries/ departments and Niti Aayog for meeting nearly 90 per cent of the target of Rs 6 lakh crore set for four years in the implementation of NMP 1.0. She said that the NMP 2.0 is aligned with the mission of achieving Viksit Bharat through accelerated infrastructure development and that the NMP has the potential to fuel India's growth momentum. Observing that the NMP 1.0 was the first of its kind of pipeline at a large scale, and best practices learnt by the authorities concerned should be leveraged in NMP 2.0, she said learnings and experiences of NMP 1.0 will serve as a guide to ensure that resources and opportunities are optimised to achieve results in a time-bound manner. She exhorted all the departments to focus on process simplification and standardisation so that monetisation becomes a seamless experience. The five-year asset monetisation target has been set at an ambitious Rs 16.7 lakh crore, over 2.6 times higher than under NMP 1.0, the minister said, adding that the ministries/departments must aim to surpass the indicated targets through proactive efforts. Highlighting the significance of asset monetisation, she said the NMP enables recycling of productive public assets, thereby unlocking resources for reinvestment in new projects and capital expenditure. She noted that this approach facilitates efficient mobilisation of funds for Capex in public assets while minimising the budgetary outgo of the government. The NMP 2.0 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 stakeholders. This is a whole-of-government initiative. An empowered Core Group of Secretaries on Asset Monetisation (CGAM) under the chairmanship of the Cabinet Secretary will continue to monitor the progress of the Asset Monetisation programme, the statement said. The government is committed to making the asset monetisation programme a value accretive proposition both for public sector and private investors/developers, through improved infrastructure quality and operations and maintenance, it added. The NMP 2.0 will contribute to strengthening the asset monetisation ecosystem and enable stakeholders to collaborate more effectively in the years ahead. After detailed discussions with the concerned central ministries, this strong portfolio covers key sectors, such as highways, railways, power, petroleum and natural gas, civil aviation, ports, warehousing and storage, urban infrastructure, coal, mines, telecom and tourism. Proceeds from asset monetisation projects are allocated to four different heads -- Consolidated Fund of India, PSU/Port Authorities allocation, State Consolidated Fund and Direct investment (private), depending on the implementing agency for the project, as well as the mode of monetisation. As regards target, highway is expected to garner the highest of Rs 4.42 lakh crore, followed by power Rs 2.77 lakh crore, ports Rs 2.64 lakh crore and Railways Rs 2.62 lakh crore over the five-year period. The approach can be divided into five stages, beginning with the identification of the asset classes for each sector to be included under the NMP 2.0, determination of the most suitable mode of monetisation per asset class and estimation of the target for award of monetisation projects between FY26 and FY30. This analysis is supplemented by an additional analysis undertaken in this phase of NMP, viz., for assets that revert to monetising agency after concession period, monetisation value net of depreciation has been estimated to study the economic value of monetisation and the determination of the allocation of monetisation proceeds among government accounts. It is estimated that the largest portion of the proceeds under the NMP 2.0 will accrue to the Consolidated Fund of India, followed by direct investment (private), PSU or Port Authority allocation and State Consolidated Fund. The assets and transactions identified under the NMP 2.0 are expected to be rolled out through a range of instruments, including direct contractual instruments, such as public-private partnership concessions, capital market instruments like Infrastructure Investment Trusts (InvIT), according to the statement. 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., it added.

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