Govt Unveils NMP 2.0 With Rs 16.7 Lakh Crore Monetisation Roadmap For FY26–30

New Delhi, Feb 24 (KNN) Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on Monday launched the second phase of the National Monetisation Pipeline (NMP 2.0), outlining an ambitious five-year roadmap to unlock Rs 16.72 lakh crore through asset monetisation between FY 2026 and FY 2030.
 
Developed by NITI Aayog in consultation with infrastructure line ministries, NMP 2.0 follows the mandate announced in the Union Budget 2025–26 under the ‘Asset Monetisation Plan 2025–30’.
 
Of the total projected value, Rs 5.8 lakh crore is expected to come fr0m private sector investment under the pipeline of Central ministries and public sector entities.
 
Builds on NMP 1.0 Success
 
At the launch, Sitharaman commended ministries and departments for achieving nearly 90 percent of the Rs 6 lakh crore target set over four years under NMP 1.0.
 
Describing NMP 2.0 as aligned with the goal of achieving ‘Viksit Bharat’ through accelerated infrastructure development, she said the programme would help fuel India’s growth momentum by recycling productive public assets and unlocking capital for new infrastructure projects.
 
She emphasised leveraging best practices fr0m NMP 1.0, focusing on process simplification and standardisation to make monetisation seamless and time-bound. The five-year target of Rs 16.7 lakh crore is over 2.6 times higher than NMP 1.0.
 
Framework and Monetisation Modes
 
NMP 2.0 retains the core asset monetisation principles of its predecessor, including transfer of assets for a limited period, divestment of portions of listed entities, securitisation of cash flows and strategic commercial auctions.
 
The estimation of monetisation potential follows five stages i.e. identification of assets, selection of suitable monetisation mode, estimation of total monetisation value, aggregation of sectoral values and allocation of proceeds.
 
Allocation of Proceeds
 
Proceeds will flow under four heads. Consolidated Fund of India- Revenues fr0m projects implemented by Central Ministries (e.g., premium, lease rentals, royalty). 
 
PSU/Port Authority allocation- Revenues retained by the concerned PSU or major port authority. State Consolidated Fund- Revenues such as royalty payments, particularly fr0m coal and mines. Direct Private Investment- Private sector investment in projects involving construction or major maintenance.
 
The largest share of proceeds is expected to accrue to the Consolidated Fund of India, followed by private investment.
 
Sectoral Distribution
 
The aggregate asset pipeline under NMP 2.0 is indicatively valued at Rs 16,72,300 crore for FY 2026–2030. The top sector is Highways, Multi-Modal Logistics Parks, Ropeways) at Rs 4,42,000 crore (26 percent). The lowest share sector is tourism at Rs 1,200 crore (0.1 percent).
 
Other key sectors include railways, power, petroleum & natural gas, civil aviation, ports, warehousing and storage, urban infrastructure, coal and mines, and telecom.
 
Instruments and Monitoring
 
Assets and transactions will be rolled out through a mix of public-private partnership (PPP) concessions, capital market instruments such as Infrastructure Investment trusts (InvITs) and other structured financial mechanisms.
 
An empowered Core Group of Secretaries on Asset Monetisation (CGAM), chaired by the Cabinet Secretary, will monitor implementation.
 
The government reiterated that monetisation values are indicative and subject to variation at the time of actual transactions.
 
NMP 2.0 is positioned as a ‘whole-of-government’ initiative aimed at value accretion for both public sector entities and private investors, while ensuring efficient mobilisation of funds for capital expenditure with minimal budgetary strain.