Finance Minister Launches National Monetisation Pipeline (NMP) 2.0 – Key Features and Objectives

Context

The Union Finance Minister has launched the National Monetisation Pipeline 2.0 (NMP 2.0) to accelerate infrastructure financing through asset monetisation.

What is it?

• NMP 2.0 is the second phase of India’s national asset monetisation programme that provides a medium-term roadmap for monetising operational public infrastructure assets.
• It focuses on unlocking value from existing brownfield assets to generate resources for new infrastructure creation and capital expenditure.
• Ministry / Implementing Agency: Developed by NITI Aayog in consultation with infrastructure line ministries.
• Implemented under the guidance of the Ministry of Finance and monitored by the Core Group of Secretaries on Asset Monetisation (CGAM).

Aim

• To recycle public assets and mobilise funds for fresh infrastructure development without increasing fiscal burden.
• To provide visibility and investment opportunities for private sector participation in infrastructure.

Key Features

• Total Monetisation Potential: ₹16.72 lakh crore for FY 2026–2030, including ₹5.8 lakh crore private investment.
• Guidance Framework: Structured as a methodology and roadmap document for ministries and investors.
• Multiple Monetisation Models: PPP concessions, InvITs, securitisation of cash flows, strategic auctions, and partial divestments.
• Revenue Allocation Mechanism: Proceeds flow to Consolidated Fund of India, PSUs, State Consolidated Funds, or direct private investments.
• Sector-Wide Coverage: Includes highways, railways, power, ports, coal, mining, telecom, aviation, tourism and urban infrastructure.
• Process Standardisation: Emphasis on simplification and time-bound execution based on lessons from NMP 1.0.
• Monitoring Mechanism: Continuous oversight by an empowered inter-ministerial group led by Cabinet Secretary.

Top 5 Sectoral Shares (FY 2026–30)

• Highways, MMLPs & Ropeways – 26% (₹4.42 lakh crore)
• Power Sector: 17% (₹2.76 lakh crore)
• Railways: 16% (₹2.62 lakh crore)
• Ports: 16% (₹2.63 lakh crore)
• Coal: 13% (₹2.16 lakh crore)

Significance

• Promotes asset recycling, enabling reinvestment into new infrastructure projects.
• Reduces dependence on direct budgetary expenditure for CAPEX.
• Strengthens PPP ecosystem and attracts long-term private investment.

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