National Monetisation Pipeline (NMP) 2.0: FY26–FY30 Asset Monetisation Plan to Fund India’s Infra Push
Finance Minister Nirmala Sitharaman has launched National Monetisation Pipeline (NMP) 2.0—the second phase of India’s public asset monetisation strategy—for FY 2026–FY 2030, prepared by NITI Aayog in consultation with infrastructure ministries. NMP 2.0 estimates an aggregate monetisation potential of ₹16.72 lakh crore, including ₹5.8 lakh crore as private sector investment over the five-year period.
What is NMP 2.0 (and why it matters)?
NMP 2.0 is a medium-term roadmap to “recycle” operating public infrastructure assets and unlock resources for reinvestment into new infrastructure and capital expenditure while minimising direct budgetary outgo. The Union Budget 2025–26 identified monetisation of operating public infrastructure assets as a key tool for sustainable infrastructure financing, leading to the preparation of NMP 2.0.
In policy terms, it is meant to improve capital availability for infrastructure without outright privatisation of strategic assets, typically using time-bound concessions, structured transactions and market instruments.
Key targets and sector priorities
Headline target (FY26–FY30)
- Total monetisation value (indicative): ₹16,72,300 crore (₹16.72 lakh crore)
- Includes private sector investment: ₹5.8 lakh crore
- Target scale: FM noted the five-year target is over 2.6 times higher than NMP 1.0.
- NMP 1.0 performance: FM said nearly 90% of the ₹6 lakh crore target (set for 4 years) was achieved.
Top sectors by share (FY26–FY30)
As per the PIB table on sector-wise award targets:
| Sector (NMP 2.0) | Total monetisation value (₹ crore) | Share |
|---|---|---|
| Highways + MMLPs + Ropeways | 4,42,000 | 26% |
| Power | 2,76,500 | 17% |
| Railways | 2,62,300 | 16% |
| Ports | 2,63,700 | 16% |
| Coal | 2,16,000 | 13% |
| Mines | 1,00,000 | 6% |
| Urban infrastructure | 52,000 | 3% |
| Civil aviation | 27,500 | 2% |
| Petroleum & natural gas | 16,300 | 1% |
| Warehousing & storage | 10,000 | — |
| Telecom | 4,800 | 0.3% |
| Tourism | 1,200 | 0.1% |
| Total | 16,72,300 | 100% |
Source: PIB release on National Monetisation Pipeline 2.0 (Table-1, sector-wise award targets for FY 2026–30).
How NMP 2.0 monetises assets (framework)
PIB states NMP 2.0 broadly follows the asset monetisation concept of NMP 1.0 and includes mechanisms such as:
- Transfer of assets for a limited period (e.g., concession-based monetisation).
- Divestment of portions of listed entities to unlock capital.
- Securitisation of cash flows and strategic commercial auctions.
- Use of instruments such as PPP concessions and Infrastructure Investment Trusts (InvITs), depending on sector and asset characteristics.
PIB also clarifies that monetisation potential values are indicative and can vary at the time of actual transactions.
Governance and monitoring mechanism
NMP 2.0 is described as a “whole-of-government initiative” built through multi-stakeholder consultations involving NITI Aayog, Ministry of Finance and line ministries. An empowered Core Group of Secretaries on Asset Monetisation (CGAM), chaired by the Cabinet Secretary, will continue to monitor progress.
UPSC relevance (GS Paper III – Economy & Infrastructure)
NMP 2.0 can be used in answers on infrastructure financing, PPPs, InvITs, fiscal space, and asset management reforms. It also links to the policy idea of “capital recycling”—monetising mature public assets to fund new capex—while raising governance issues like valuation transparency, contract design, and service quality monitoring.
FAQs
Q1. What is National Monetisation Pipeline (NMP) 2.0?
NMP 2.0 is the second phase of India’s asset monetisation pipeline for central ministries and PSUs, providing a five-year roadmap (FY26–FY30) for monetising operating public infrastructure assets.
Q2. What is the total monetisation target under NMP 2.0?
The aggregate asset pipeline is indicatively valued at ₹16.72 lakh crore, including ₹5.8 lakh crore in private sector investment.
Q3. Which sectors get the highest share?
Highways (including MMLPs and ropeways) lead with 26%, followed by power (17%), and railways (16%) (ports are also around 16%).
Q4. What monetisation instruments are mentioned for NMP 2.0?
PIB mentions limited-period asset transfer, divestment of parts of listed entities, securitisation of cash flows, strategic auctions, PPP concessions and InvITs.
Q5. How is NMP 2.0 monitored?
An empowered Core Group of Secretaries on Asset Monetisation (CGAM) chaired by the Cabinet Secretary will monitor implementation.
Q6. Is NMP 2.0 privatisation?
PIB frames it as monetisation to recycle productive public assets and unlock capital for reinvestment; it includes limited-period transfers and market instruments rather than necessarily selling assets outright.
