India’s National Monetisation Pipeline (NMP) 2.0, launched by Finance Minister Nirmala Sitharaman on February 23, targets to raise Rs 10 lakh crore over the next five years, marking a significant escalation from the Rs 6 lakh crore goal of its predecessor, NMP 1.0. The new initiative, announced in the Union Budget 2025-26, aims to unlock Rs 16.72 lakh crore in potential value from public sector assets, including Rs 5.8 lakh crore in private sector investment, over the financial years 2026 to 2030.

Enhanced Targets and Sectoral Focus

The NMP 1.0, launched in 2021 by Niti Aayog, aimed to mobilise Rs 6 lakh crore through the monetisation of public infrastructure assets over four years (FY2022-25). It achieved 89 per cent of its target, raising Rs 5.3 lakh crore. The new NMP 2.0, however, sets a more ambitious target of Rs 16.72 lakh crore, over 2.6 times higher than the earlier initiative, according to an official statement.

Finance Minister Sitharaman highlighted that the NMP 2.0 is aligned with the broader vision of Viksit Bharat, aiming to accelerate infrastructure development and fuel India’s growth momentum. She noted that the monetisation of public assets would enable the recycling of resources for reinvestment in new projects and capital expenditure, minimising the government’s budgetary burden.

The NMP 2.0 covers a wide range of sectors, including highways, railways, power, petroleum and natural gas, civil aviation, ports, warehousing and storage, urban infrastructure, coal, mines, telecom, and tourism. Among these, highways are expected to generate the highest proceeds of Rs 4.42 lakh crore, followed by power at Rs 2.77 lakh crore, ports at Rs 2.64 lakh crore, and railways at Rs 2.62 lakh crore over the five-year period.

Implementation and Governance

The NMP 2.0 is a culmination of insights from multi-stakeholder consultations involving Niti Aayog, the Ministry of Finance, and line ministries. The initiative is described as a ‘whole-of-government’ effort, with an empowered Core Group of Secretaries on Asset Monetisation (CGAM), chaired by the Cabinet Secretary, monitoring its progress.

According to the statement, the government is committed to making the asset monetisation programme a value-adding proposition for both public sector entities and private investors. This includes improving infrastructure quality and operations and maintenance, ensuring that the benefits of monetisation are maximised.

The monetisation proceeds will be allocated across four heads: the Consolidated Fund of India, PSU/Port Authorities allocation, the State Consolidated Fund, and direct investment (private), depending on the implementing agency and the mode of monetisation. It is estimated that the largest portion of the proceeds will go to the Consolidated Fund of India, followed by direct private investment, PSU or Port Authority allocation, and the State Consolidated Fund.

Strategic Stages and Instruments

The approach to implement NMP 2.0 is divided into five stages, beginning with the identification of asset classes for each sector and determining the most suitable monetisation mode. The analysis also includes estimating the monetisation value net of depreciation for assets reverting to the monetising agency after the concession period.

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 and capital market instruments like Infrastructure Investment Trusts (InvIT). The choice of instrument will depend on the sector, nature of the asset, timing of transactions, investor profile, and the level of operational or investment control retained by the asset owner.

Sitharaman urged all ministries and departments to focus on process simplification and standardisation to ensure that monetisation becomes a smooth experience. She also emphasized that the lessons learned from NMP 1.0 would serve as a guide to optimise resources and achieve results in a time-bound manner.

The NMP 2.0 is expected to strengthen the asset monetisation ecosystem, enabling more effective collaboration among stakeholders in the years ahead. With the goal of raising Rs 10 lakh crore over five years, the initiative is seen as a critical step in India’s infrastructure development and financial sustainability strategy.