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NITI Aayog | Ministry of Finance | Core Group of Secretaries on Asset Monetisation (CGAM)
Union Finance Minister Smt. Nirmala Sitharaman has launched the National Monetisation Pipeline 2.0 (NMP 2.0), an ambitious strategic framework targeting a monetisation potential of ₹16.72 lakh (2.6x higher than NMP 1.0) target crore from FY2026 to FY2030. Building on the success of NMP 1.0—which achieved 89% of its ₹6 lakh crore target—the second phase aims to unlock the value of operating public infrastructure assets across 12 key sectors, including highways, railways, and power.
The initiative is designed to recycle productive public assets to mobilize funds for new capital expenditure (CAPEX) while minimizing the government’s budgetary outgo. By utilizing various Public-Private Partnership (PPP) models, such as InvITs and TOT (Toll-Operate-Transfer, used for asset monetisation, particularly in the highways sector), the pipeline seeks to attract ₹5.8 lakh crore in private sector investment, aligning with the vision of achieving Viksit Bharat @2047 through high-quality infrastructure and operational efficiency.
Key Pillars for NMP 2.0 Implementation
Strategic Asset Recycling: Transitioning from “Passive Ownership” to “Active Value Creation” by reinvesting proceeds from operating assets into new infrastructure projects.
Sectoral Diversification: Expanding the monetisation portfolio across 12 sectors, with Highways (26%), Power (17%), and Railways (16%) holding the highest targets.
Hybrid Monetisation Modes: Utilizing a mix of contractual concessions (PPP), capital market instruments (InvITs), and strategic equity divestment in PSUs.
Structured Revenue Allocation: Distributing proceeds among the Consolidated Fund of India, PSU/Port Authority allocations, State Consolidated Funds, and direct private investments. This structured approach ensures transparency and efficient utilization of funds.
Institutional Governance: Empowering the Core Group of Secretaries on Asset Monetisation (CGAM) to monitor progress and ensure process standardization and transparency.
What is “Asset Monetisation”? Asset monetisation refers to the process of unlocking the economic value of investment in public infrastructure assets by tapping into private sector capital and efficiencies. In NMP 2.0, this involves transferring the right to operate and maintain existing, revenue-generating brownfield assets to private players for a limited period in exchange for upfront or periodic payments. Crucially, the government retains ownership of the strategic assets, ensuring that public resources are optimized to fund the “Infrastructure Creation” mandate without increasing the fiscal deficit.
Policy Relevance
For India, NMP 2.0 represents a transition from “Budget-Reliant Infrastructure” to “Value-Accretive Self-Financing,” essential for maintaining the world’s fastest-growing major economy.
Infrastructure Leapfrogging via PPPs: By attracting ₹5.8 lakh crore in private capital, NITI Aayog allows the government to bypass the limitations of traditional public funding, accelerating the delivery of world-class highways and ports.
Operationalizing Fiscal Prudence: Utilizing asset recycling ensures that massive CAPEX requirements for Viksit Bharat do not lead to an unsustainable budgetary outgo, protecting India’s sovereign financial stability.
Efficiency Gains in Public Services: Transferring operations to private developers under models like TOT and InvIT is expected to improve the “O&M Fidelity” of public assets, ensuring higher service quality for citizens.
Federal Revenue Convergence: Accruals to the State Consolidated Funds (particularly from coal and mining) ensure that states have the fiscal space to implement localized urban and rural development programs.
Data-Driven Monetisation Roadmap: The 2.6x higher target in NMP 2.0 provides the “High-Quality Visibility” identified necessary for attracting long-term institutional investors.
Follow the full update here: National Monetisation Pipeline 2.0