February 23, New Delhi — Union Minister for Finance and Corporate Affairs Nirmala Sitharaman launched the second phase of the asset monetization pipeline of central ministries and public sector entities – ‘National Monetisation Pipeline 2.0 (NMP 2.0)’ today. The second phase of the pipeline has been developed by NITI Aayog, in consultation with infrastructure line ministries, based on the mandate for ‘Asset Monetisation Plan 2025-30’ as announced in the Union Budget 2025-26.
The NMP 2.0 estimates a total monetisation potential of ₹16.72 lakh crore, including private sector investment of ₹5.8 lakh crore under the asset monetization pipeline of central ministries and public sector entities, over the five-year period from FY 2026 to FY 2030.
NMP 2.0 was released in the presence of the CEO of NITI Aayog and the Secretaries of infrastructure line ministries, including Road Transport and Highways, Railways, Power, Petroleum and Natural Gas, Civil Aviation, Ports Shipping and Waterways, Telecommunications, Tourism, Food and Public Distribution, Mining, Coal and Housing and Urban Affairs, along with the Secretaries of the Ministry of Finance, Secretary Law, and the Chief Economic Advisor.
In her address at the launch, the Union Finance Minister complimented all the ministries/departments of the Government and NITI Aayog for achieving nearly 90% of the target of ₹6 lakh crore set for the implementation of NMP 1.0 over 4 years.
Minister Sitharaman said that NMP 2.0 is aligned with the mission of achieving ‘Viksit Bharat’ through accelerated infrastructure development, and that NMP has the potential to fuel India's growth momentum.
The Union Finance Minister observed that NMP 1.0 was the first of its kind at a large scale, and that the best practices learnt by the concerned authorities should be leveraged in NMP 2.0. The Minister emphasized that the learnings and experiences of NMP 1.0 will serve as a guide to ensure that resources and opportunities are optimized to achieve results in a time-bound manner.
Minister Sitharaman also noted that the five-year asset monetization target has been set at an ambitious ₹16.7 lakh crore, which is more than 2.6 times higher than that under NMP 1.0, and added that the Ministries/Departments must aim to surpass the indicated targets through proactive efforts.
Highlighting the significance of asset monetization, the Union Finance Minister said that NMP enables the recycling of productive public assets, thereby unlocking resources for reinvestment in new projects and capital expenditure. She noted that this approach facilitates efficient mobilization of funds for CAPEX in public assets while minimising budgetary outgo of the Government.
NMP 2.0 is a culmination of insights, feedback, and experiences consolidated through multi-stakeholder consultations undertaken by NITI Aayog, the Ministry of Finance, and line ministries. Several rounds of discussion have been held by NITI Aayog with the stakeholders. This is a whole-of-a-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 Government is committed to making the asset monetisation programme a value- accretive proposition for both public sector and private investors/developers, through improved infrastructure quality and operations & maintenance.
It is 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), PSU or Port Authority allocation, and State Consolidated Fund.
The assets and transactions identified under 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 such as Infrastructure Investment Trusts (InvITs), among others. The choice of instrument will be determined by the sector, nature of the 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 potential values assessed under NMP 2.0 are indicative and are subject to variation at the time of the actual transaction.
Access more details here: pib.gov.in
Photo Source: X/@finminindia