Sitharaman launched the second phase of the pipeline, which 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 sectors included are highways (including MMLPs, ropeways), railways, power, petroleum and natural gas, civil aviation, ports, warehousing and storage, urban infrastructure, coal, mines, telecom and tourism.
NMP 2.0 was released in presence of CEO, NITI Aayog and Secretaries of infrastructure line ministries included under the pipeline — 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 Ministry of Finance, Secretary Law, and the Chief Economic Adviser.
In her address at the launch, the Union Finance Minister said nearly 90 per cent of the target of Rs. 6 lakh crore set for 4 years in the implementation of NMP 1.0. has been met.
NMP 1.0 was the first of its kind of pipeline at a large scale, and best practices learnt by the authorities concerned should be leveraged in NMP 2.0., Sitharaman said.
She also noted that the five-year asset monetisation target has been set at an ambitious Rs. 16.7 lakh crore, over 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.
NMP enables recycling of productive public assets, thereby unlocking resources for reinvestment in new projects and capital expenditure, Sitharaman said.
She noted that the approach facilitates efficient mobilisation 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, 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 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 both for public sector and private investors/developers, through improved infrastructure quality and operations & maintenance.
Asset monetisation shall comprise elements such as transfer of assets for a limited period, divestment of portions of listed entities to unlock additional capital, securitisation of cash flows or strategic commercial auctions.
The proceeds from asset monetisation projects are allocated to four different heads depending on the implementing agency of the project, as well as the project’s mode of monetisation.
- Consolidated Fund of India: Any type of Government revenue from a monetisation project that is implemented by a Central Ministry (for example, revenue share, premium, lease rental, royalty) shall flow to Consolidated Fund of India.
- PSU/Port Authorities allocation: Proceeds from monetisation activities undertaken by PSUs shall accrue to the concerned PSU (similar norm shall be followed for Major Port Authorities).
- State Consolidated Fund: Certain projects under NMP 2.0 are expected to generate revenues to the State Governments, especially those belonging to the mines and coal sectors (royalty payments). These proceeds shall accrue to State Consolidated Fund.
- Direct investment (private): This head shall record the investment by the private sector in monetisation projects that involve construction and/or major maintenance components.
- It is estimated that largest portion of the proceeds under NMP 2.0 shall accrue to Consolidated Fund of India, followed by direct investment (private), PSU or Port Authority allocation and State Consolidated Fund.
- The assets and transactions identified under the 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 (InvIT) among others. The choice of instrument will be determined by the sector, nature of 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.
- Read full report here:https://niti.gov.in/sites/default/files/2026-02/National-Monetisation-Pipeline.pdf
