FM Sitharaman launches NMP 2.0, Rs 16.72 lakh crore of asset monetisation seen by 2030
Under National Monetisation Pipeline 1.0, which covered the four-year period starting 2021-22 to 2024-25, 89% of the target of Rs 6 lakh crore was achieved.
Finance Minister Nirmala Sitharaman on Monday launched the National Monetisation Pipeline 2.0 (NMP 2.0), with proceeds from asset monetisation seen at Rs 16.72 lakh crore over the five years that started April 2025. Developed by the Niti Aayog, the government’s top think-tank, the second phase of the pipeline is based on the mandate for ‘Asset Monetisation Plan 2025-30’ announced in the Union Budget for 2025-26 last year, but exceeds the figure of Rs 10 lakh crore that was then mentioned.
The first phase of the pipeline – which looks to unlock value from underutilised public infrastructure assets through transfer of assets for a limited period, divestment of portions of listed entities, securitisation of cash flows, or strategic commercial auctions – was launched in 2021. The Niti Aayog noted in its report on NMP 2.0 that NMP 1.0 had shown that monetisation projects had led to greater involvement of institutional investors such as pension and sovereign wealth funds in the development of India’s infrastructure.
“Most of these investors have entered the Indian market by way of the larger asset monetisation projects, such as National Highways Authority of India’s Toll-Operate-Transfer (TOT) projects and Infrastructure Investment Trust (InvIT). Further, the progress made under NMP 1.0 has led to the creation of Public InvITs, allowing citizens to directly participate in infrastructure development in India,” the report said, noting that 89% of the NMP 1.0 target of Rs 6 lakh crore had been achieved over the four-year period covering 2021-22 to 2024-25.
The second phase of the pipeline covers the five years starting 2025-26, with the overall asset monetisation potential figure of Rs 16.72 lakh crore inclusive of private investments worth Rs 5.8 lakh crore, the government said. More than a quarter of the funds, or Rs 4.42 lakh crore, is expected to be raised from the monetisation of 21,300 kilometres of highways, 15 Multi-Modal Logistics Parks, and six ropeways.
The other sectors part of the pipeline and their estimated Total Monetisation Value are power (Rs 2.77 lakh crore), ports (Rs 2.64 lakh crore), railways (Rs 2.62 lakh crore), coal (Rs 2.16 lakh crore), mines (Rs 1 lakh crore), urban infrastructure (Rs 52,000 crore), civil aviation (Rs 27,500 crore), petroleum and natural gas (Rs 16,300 crore), warehousing and storage (Rs 10,000 crore), telecom (Rs 4,800 crore), and tourism (Rs 1,200 crore).
The above includes raising money through the listing of a minority stake in GAIL Gas, divestment of Airports Authority of India’s holdings in one subsidiary and four joint-venture airports, developing select land parcels belonging to the major port authorities and the Food Corporation of India through the Public-Private Partnership (PPP) model, auctioning around 94 coal mines, and leasing out 38 land parcels of Bharat Sanchar Nigam Limited (BSNL) on long-term basis, among others.
“NMP 2.0 aligns with the infrastructure development plans of the Viksit Bharat initiative,” the Niti Aayog report said. “It aims to contribute in accelerated infrastructure development through upgrading and expansion of transportation networks, including highways, railways, ports and airports, along with other sectors. PPPs are an important mode of monetisation under NMP 2.0 and are expected to play a significant role by improving public sector efficiency and service quality, reducing public debt through capital recycling and attracting private sector investment,” it added.
The government has estimated that the largest portion of the proceeds under NMP 2.0 will accrue to the Consolidated Fund of India, followed by direct investment (private), public sector undertakings or port authority allocation, and State Consolidated Fund.
Finance Minister Nirmala Sitharaman on Monday launched the National Monetisation Pipeline 2.0 (NMP 2.0), with proceeds from asset monetisation seen at Rs 16.72 lakh crore over the five years that started April 2025. Developed by the Niti Aayog, the government’s top think-tank, the second phase of the pipeline is based on the mandate for ‘Asset Monetisation Plan 2025-30’ announced in the Union Budget for 2025-26 last year, but exceeds the figure of Rs 10 lakh crore that was then mentioned.
The first phase of the pipeline – which looks to unlock value from underutilised public infrastructure assets through transfer of assets for a limited period, divestment of portions of listed entities, securitisation of cash flows, or strategic commercial auctions – was launched in 2021. The Niti Aayog noted in its report on NMP 2.0 that NMP 1.0 had shown that monetisation projects had led to greater involvement of institutional investors such as pension and sovereign wealth funds in the development of India’s infrastructure.
“Most of these investors have entered the Indian market by way of the larger asset monetisation projects, such as National Highways Authority of India’s Toll-Operate-Transfer (TOT) projects and Infrastructure Investment Trust (InvIT). Further, the progress made under NMP 1.0 has led to the creation of Public InvITs, allowing citizens to directly participate in infrastructure development in India,” the report said, noting that 89% of the NMP 1.0 target of Rs 6 lakh crore had been achieved over the four-year period covering 2021-22 to 2024-25.
The second phase of the pipeline covers the five years starting 2025-26, with the overall asset monetisation potential figure of Rs 16.72 lakh crore inclusive of private investments worth Rs 5.8 lakh crore, the government said. More than a quarter of the funds, or Rs 4.42 lakh crore, is expected to be raised from the monetisation of 21,300 kilometres of highways, 15 Multi-Modal Logistics Parks, and six ropeways.
The other sectors part of the pipeline and their estimated Total Monetisation Value are power (Rs 2.77 lakh crore), ports (Rs 2.64 lakh crore), railways (Rs 2.62 lakh crore), coal (Rs 2.16 lakh crore), mines (Rs 1 lakh crore), urban infrastructure (Rs 52,000 crore), civil aviation (Rs 27,500 crore), petroleum and natural gas (Rs 16,300 crore), warehousing and storage (Rs 10,000 crore), telecom (Rs 4,800 crore), and tourism (Rs 1,200 crore).
The above includes raising money through the listing of a minority stake in GAIL Gas, divestment of Airports Authority of India’s holdings in one subsidiary and four joint-venture airports, developing select land parcels belonging to the major port authorities and the Food Corporation of India through the Public-Private Partnership (PPP) model, auctioning around 94 coal mines, and leasing out 38 land parcels of Bharat Sanchar Nigam Limited (BSNL) on long-term basis, among others.
“NMP 2.0 aligns with the infrastructure development plans of the Viksit Bharat initiative,” the Niti Aayog report said. “It aims to contribute in accelerated infrastructure development through upgrading and expansion of transportation networks, including highways, railways, ports and airports, along with other sectors. PPPs are an important mode of monetisation under NMP 2.0 and are expected to play a significant role by improving public sector efficiency and service quality, reducing public debt through capital recycling and attracting private sector investment,” it added.
The government has estimated that the largest portion of the proceeds under NMP 2.0 will accrue to the Consolidated Fund of India, followed by direct investment (private), public sector undertakings or port authority allocation, and State Consolidated Fund.
