Centre unveils NMP 2.0 with ₹10 lakh crore target; to cover key sectors including highways, ports

New Delhi: Finance Minister Nirmala Sitharaman on Monday unveiled the National Monetisation Pipeline (NMP) 2.0, which seeks to mobilise ₹10 lakh crore over a five-year period. The first phase of the programme, NMP 1.0, was introduced in 2021 by NITI Aayog for FY2022–25 with a target of unlocking ₹6 lakh crore by leasing brownfield public infrastructure assets to private players. It achieved 89 per cent of its goal, generating ₹5.3 lakh crore.

In the Union Budget 2025–26, the government set a ₹10 lakh crore target for NMP 2.0 covering FY26–30.

According to an official statement, NMP 2.0 estimates a total monetisation potential of ₹16.72 lakh crore over five years, which includes ₹5.8 lakh crore in private sector investments under the asset monetisation plans of central ministries and public sector entities between FY2026 and FY2030.

At the launch event, Sitharaman commended various ministries, departments and NITI Aayog for achieving nearly 90 per cent of the ₹6 lakh crore target under NMP 1.0.

She said NMP 2.0 aligns with the broader vision of achieving Viksit Bharat through faster infrastructure development and has the capacity to strengthen India’s growth trajectory.

Describing NMP 1.0 as a pioneering large-scale initiative, the minister stressed that the lessons and best practices from the first phase should be effectively applied to NMP 2.0 to ensure optimal use of resources and timely implementation.

She urged departments to prioritise simplification and standardisation of procedures to make asset monetisation smoother and more efficient.

The minister noted that the five-year asset monetisation target of ₹16.7 lakh crore is over 2.6 times higher than that under NMP 1.0 and called upon ministries to exceed the assigned targets through proactive efforts.

Emphasising the importance of asset monetisation, Sitharaman said the programme facilitates recycling of productive public assets, enabling reinvestment in new infrastructure and capital expenditure while reducing pressure on the government’s budget.

NMP 2.0 has been formulated after extensive consultations involving NITI Aayog, the Ministry of Finance, and various line ministries, incorporating feedback from multiple stakeholders.

NITI Aayog conducted several rounds of discussions as part of this whole-of-government initiative.

An empowered Core Group of Secretaries on Asset Monetisation (CGAM), chaired by the Cabinet Secretary, will continue to oversee the progress of the programme.

The government reiterated its commitment to making asset monetisation beneficial for both the public sector and private investors by enhancing infrastructure quality, operations and maintenance.

NMP 2.0 aims to strengthen the overall monetisation ecosystem and foster improved collaboration among stakeholders.

Following detailed discussions with central ministries, the asset portfolio spans key sectors including highways, railways, power, petroleum and natural gas, civil aviation, ports, warehousing and storage, urban infrastructure, coal, mining, telecom and tourism.

Proceeds from monetisation projects will be distributed across four categories — the Consolidated Fund of India, allocations to PSUs or Port Authorities, State Consolidated Funds, and direct private investment — depending on the implementing agency and the chosen monetisation model.

Among sectors, highways are projected to generate the highest revenue at ₹4.42 lakh crore, followed by power (₹2.77 lakh crore), ports (₹2.64 lakh crore) and railways (₹2.62 lakh crore) over the five-year period.

The monetisation framework involves five stages, beginning with the identification of asset classes in each sector, the selection of suitable monetisation models, and the estimation of award targets for FY26–30.

An additional analytical component in NMP 2.0 evaluates the economic value of assets that revert to the monetising authority after the concession period, including estimation of value net of depreciation and allocation of proceeds among government accounts.

It is estimated that the largest share of proceeds under NMP 2.0 will flow into the Consolidated Fund of India, followed by direct private investments, allocations to PSUs or Port Authorities, and State Consolidated Funds.

Assets under NMP 2.0 will be monetised through various mechanisms, including direct contractual arrangements such as public-private partnership concessions and market-based instruments like Infrastructure Investment Trusts (InvITs).

The choice of instrument will depend on factors such as sectoral characteristics, asset type, market conditions, investor profile and the extent of operational or investment control retained by the asset owner, the statement added.