National Monetisation Pipeline 2.0 (NMP 2.0)
Context:
The Union Finance Minister recently launched the National Monetisation Pipeline 2.0 (NMP 2.0).
Developed by NITI Aayog in consultation with infrastructure line ministries, this second phase aligns with the "Asset Monetisation Plan 2025-30" mandated in the Union Budget 2025-26.
Key Estimates and Targets:
The NMP 2.0 estimates an aggregate monetisation potential of ₹16.72 lakh crore over the five-year period from FY 2026 to FY 2030.
This includes a projected private sector investment of ₹5.8 lakh crore.
The pipeline is designed to align with the infrastructure development plans of the Viksit Bharat initiative.
The approach to estimation of monetisation potential under NMP 2.0 is divided into five stages:
Framework:
NMP 2.0 shall broadly follow the concept of asset monetisation as laid out in NMP 1.0.
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
Sectoral Breakdown:
The top three sectors contributing to the pipeline are:
Roads (Highest contribution).
Railways
Power
Other significant sectors include
Petroleum & Natural Gas
Mining
Telecom.
Implementation and Proceeds:
Assets will be monetised through various instruments determined by factors like asset nature and investor profile.
These include direct contractual instruments like Public Private Partnership (PPP) concessions and capital market instruments such as Infrastructure Investment Trusts (InvITs).
The largest portion of the proceeds is estimated to accrue to the Consolidated Fund of India, followed by direct private investment, PSU/Port Authority allocations, and the State Consolidated Fund.