Union Finance Minister Nirmala Sitharaman recently launched the second phase of the National Monetisation Pipeline, titled National Monetisation Pipeline 2.0, outlining a comprehensive five-year strategy to unlock ₹16.72 lakh crore from public infrastructure assets and strengthen India’s growth momentum under the Viksit Bharat initiative.
The second phase of the asset monetisation pipeline, covering the period from FY 2026 to FY 2030, has been developed by NITI Aayog in consultation with infrastructure line ministries and public sector entities. It is based on the mandate for the Asset Monetisation Plan 2025–30 announced in the Union Budget 2025–26, which identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing.
NMP 2.0 estimates an aggregate monetisation potential of ₹16.72 lakh crore, including private sector investment of ₹5.8 lakh crore under the asset monetisation pipeline of central ministries and public sector enterprises. The programme aims to provide a medium-term roadmap for public asset owners while offering greater visibility on potential assets to private investors. The report on NMP 2.0 is structured as a guidance book detailing the methodology and roadmap for monetisation.
High-Level Participation at the Launch
The pipeline was released in the presence of the CEO of NITI Aayog and secretaries of infrastructure line ministries included under the programme. These comprised 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. The event was also attended by the secretaries of the Ministry of Finance, the Law Secretary and the Chief Economic Adviser.
Review of NMP 1.0 and Institutional Learning
In her address, Sitharaman complimented all ministries, departments, and NITI Aayog for meeting nearly 90 per cent of the ₹6 lakh crore target set for four years under NMP 1.0. She observed that NMP 1.0 was the first large-scale asset monetisation pipeline of its kind in India and said that the best practices learnt by authorities should be leveraged in the second phase.
She underscored that the learnings and experiences of NMP 1.0 would serve as a guide to ensure that resources and opportunities are optimised to achieve results in a time-bound manner. She exhorted all departments to focus on process simplification and standardisation so that monetisation becomes a seamless experience.
Ambitious Targets and Growth Orientation
The Finance Minister said NMP 2.0 is aligned with the mission of achieving Viksit Bharat through accelerated infrastructure development and has the potential to fuel India’s growth momentum. She described the five-year asset monetisation target of ₹16.7 lakh crore as ambitious and more than 2.6 times higher than that of NMP 1.0, urging ministries and departments to surpass the indicated targets through proactive efforts.
Highlighting the significance of asset monetisation, she said the programme 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 mobilisation of funds for public asset creation while minimising budgetary outgo.
Consultative Process and Oversight Mechanism
NMP 2.0 represents 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 discussions were held with stakeholders, making it a whole-of-government initiative.
An empowered Core Group of Secretaries on Asset Monetisation, chaired by the Cabinet Secretary, will continue to monitor programme implementation. The government has committed to making the asset monetisation programme a value-accretive proposition for both the public sector and private investors through improved infrastructure quality and operations and maintenance.
Framework and Monetisation Methods
NMP 2.0 broadly follows the framework laid down under NMP 1.0. Asset monetisation comprises transfer of assets for a limited period, divestment of portions of listed entities to unlock capital, securitisation of cash flows and strategic commercial auctions.
The approach to estimating monetisation potential under NMP 2.0 is divided into five stages. While specific stages are detailed in the report, the methodology ensures systematic identification, evaluation and structuring of assets for monetisation.
Sector-Wise Targets
Under NMP 2.0, the aggregate asset pipeline of ₹16.72 lakh crore is distributed across twelve sectors:
Highways, multimodal logistics parks and ropeways account for ₹4,42,000 crore or 26 per cent. Railways account for ₹2,62,300 crore or 16 per cent. Power accounts for ₹2,76,500 crore or 17 per cent. Petroleum and natural gas account for ₹16,300 crore or 1 per cent. Civil aviation accounts for ₹27,500 crore or 2 per cent. Ports account for ₹2,63,700 crore or 16 per cent. Warehousing and storage account for ₹10,000 crore or 1 per cent. Urban infrastructure accounts for ₹52,000 crore or 3 per cent. Coal accounts for ₹2,16,000 crore or 13 per cent. Mines account for ₹1,00,000 crore or 6 per cent. Telecommunications account for ₹4,800 crore or 0.3 per cent. Tourism accounts for ₹1,200 crore or 0.1 per cent.
Annual Phasing of Targets
The annual monetisation targets are phased as follows:
FY26: ₹2,49,493 crore
FY27: ₹3,26,435 crore
FY28: ₹3,46,312 crore
FY29: ₹3,68,852 crore
FY30: ₹3,81,208 crore
In highways, MMLPs and ropeways, targets rise from ₹59,140 crore in FY26 to ₹1,17,860 crore in FY30. Railways range from ₹40,580 crore to ₹53,591 crore. Power ranges from ₹49,900 crore to ₹54,725 crore. Petroleum and gas ranges from ₹4,240 crore to ₹1,557 crore. Civil aviation is phased mainly after FY27. Ports contribute around ₹55,700 crore annually from FY27 onwards. Warehousing declines from ₹4,318 crore to ₹970 crore. Urban infrastructure peaks in FY29 and FY30. Coal declines gradually from ₹31,540 crore to ₹43,480 crore. Mining rises steadily. Telecom increases from ₹820 crore to ₹1,130 crore. Tourism is concentrated in FY27 and FY30.
Allocation of Monetisation Proceeds
Proceeds from monetisation projects are allocated under four heads.
Revenue from projects implemented by central ministries flows to the Consolidated Fund of India. Proceeds from PSU and major port authority projects accrue to the respective entities. Royalties from coal and mining projects accrue to the state consolidated funds. Private sector investment in projects involving construction or major maintenance is recorded under direct investment.
It is estimated that the largest share of proceeds will accrue to the Consolidated Fund of India, followed by direct private investment, PSU and port authority allocations and state revenues.
Instruments and Transaction Design
Assets and transactions under NMP 2.0 will be rolled out through a range of instruments, including public-private partnership concessions, Infrastructure Investment Trusts, securitisation structures, strategic auctions and capital market instruments.
The choice of instrument will depend on sectoral characteristics, asset nature, market timing, investor profile and the degree of operational and investment control retained by asset owners.
Indicative Valuation and Market Sensitivity
The government has clarified that monetisation potential values assessed under NMP 2.0 are indicative and subject to variation at the time of actual transactions, depending on market conditions and project-specific factors.
Officials said the programme reflects a disciplined, transparent and market-oriented approach to infrastructure financing and is expected to play a central role in sustaining India’s long-term economic growth through systematic recycling of public assets and reinvestment in national development priorities.
