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The Government of India has introduced National Monetisation Pipeline (NMP) 2.0 with a target to mobilise INR 10 lakh crore over the next five years by monetising existing public infrastructure assets. The programme follows the first NMP, which achieved about 89% of its INR 6 lakh crore target. The new framework estimates a total monetisation potential of INR 16.72 lakh crore, including INR 5.8 lakh crore from private participation. Over 2,000 assets across key infrastructure sectors have been identified under the expanded plan.
The Government of India has rolled out the second phase of the National Monetisation Pipeline (NMP 2.0) with a plan to raise INR 10 lakh crore over a five-year period through structured monetisation of operational public infrastructure assets. The initiative is designed to unlock value from brownfield assets while keeping ownership with the government. Advertisement
The first National Monetisation Pipeline, launched in 2021, had set a target of INR 6 lakh crore. It achieved around INR 5.3 lakh crore, or nearly 89% of the goal. The government has stated that lessons from the first phase have been incorporated into the new framework to improve execution, simplify procedures, and ensure better coordination among ministries and implementing agencies.
Under NMP 2.0, the total monetisation potential has been estimated at INR 16.72 lakh crore. Of this, around INR 5.8 lakh crore is expected to come through private sector investment. The plan covers more than 2,000 assets across sectors such as national highways, railways, power transmission, power generation, ports, airports, urban infrastructure, telecom, warehousing, petroleum and natural gas pipelines, coal and mining blocks, ropeways, logistics parks, and tourism infrastructure.
Road assets, including highways and expressways, are expected to contribute a significant share of the monetisation proceeds. Multi-modal logistics parks and ropeways have also been identified as emerging areas under the expanded pipeline. Power, railways, and ports are other major contributors.
Officials have indicated that monetisation will be carried out through various models depending on the nature of the asset. These include public-private partnership concessions, long-term leasing arrangements, and market-based instruments such as Infrastructure Investment Trusts (InvITs). The proceeds from monetisation will be channelled into the Consolidated Fund of India, respective state funds, or directly reinvested into new infrastructure projects, depending on the asset structure.
An empowered monitoring mechanism will oversee implementation to ensure targets are met and timelines are maintained. The programme is being positioned as a coordinated effort across ministries to support infrastructure financing without increasing fiscal pressure. By recycling capital tied up in existing assets, the government aims to create additional resources for new infrastructure creation under the broader national infrastructure development agenda.
Source PTI
FAQ
1. What is National Monetisation Pipeline (NMP) 2.0?
National Monetisation Pipeline (NMP) 2.0 is the second phase of the Government of India's asset monetisation programme. It aims to mobilise INR 10 lakh crore over five years by monetising existing brownfield public infrastructure assets while retaining government ownership.
2. How did the first phase of NMP perform?
The first phase, launched in 2021, had a target of INR 6 lakh crore. It achieved around INR 5.3 lakh crore, which is nearly 89% of the target. The government has stated that execution-related learnings from the first phase have been incorporated into NMP 2.0.
3. What is the total monetisation potential under NMP 2.0?
Under the new framework, the total monetisation potential has been estimated at INR 16.72 lakh crore. Of this, around INR 5.8 lakh crore is expected to be mobilised through private sector participation across identified assets.
4. Which sectors are covered under the expanded pipeline?
More than 2,000 assets across sectors such as national highways, railways, power transmission and generation, ports, airports, urban infrastructure, telecom, warehousing, petroleum and natural gas pipelines, coal and mining blocks, ropeways, logistics parks, and tourism infrastructure have been included.
5. What monetisation models will be used?
The government will adopt different models depending on the asset type, including public-private partnership concessions, long-term lease arrangements, and market-based instruments such as Infrastructure Investment Trusts (InvITs). These structures aim to attract private investment while maintaining public ownership.
6. How will the monetisation proceeds be utilised?
Funds raised will be channelled into the Consolidated Fund of India, respective state funds, or reinvested into new infrastructure projects. The objective is to recycle capital locked in operational assets and support fresh infrastructure creation without adding fiscal pressure.
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