Government Unveils New National Monetization Pipeline, Targets Rs 10 Lakh Crore in Proceeds Over Five-Year Period

National Monetisation Pipeline (NMP) 2.0: A Five-Year Plan to Mobilise Rs 10 Lakh Crore

Key Highlights:

• The National Monetisation Pipeline (NMP) 2.0, launched by Finance Minister Nirmala Sitharaman, aims to mobilise Rs 10 lakh crore over a period of 5 years (FY26-30).
• The NMP 2.0 estimates an aggregate monetisation potential of Rs 16.72 lakh crore, including private sector investment of Rs 5.8 lakh crore.

Background:

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• The NMP 1.0 was launched in 2021 by Niti Aayog for FY2022-25, targeting Rs 6 lakh crore through leasing to private investors. NMP 1.0 achieved 89% of its target, amounting to Rs 5.3 lakh crore.
• The Union Budget 2025-26 announced a target for NMP 2.0 as Rs 10 lakh crore over five years.

Objectives:

• Align with the mission of achieving Viksit Bharat through accelerated infrastructure development.
• Fuel India's growth momentum by leveraging the potential of NMP.
• Optimize resources and opportunities to achieve results in a time-bound manner.

Key Sectors:

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• Highways: Rs 4.42 lakh crore
• Power: Rs 2.77 lakh crore
• Ports: Rs 2.64 lakh crore
• Railways: Rs 2.62 lakh crore

Monetisation Proceeds:

• Allocated to four different heads:
  • Consolidated Fund of India
  • PSU/Port Authorities allocation
  • State Consolidated Fund
  • Direct investment (private)

Implementation:

• The NMP 2.0 will be implemented in five stages:
  1. Identification of asset classes for each sector.
  2. Determination of the most suitable mode of monetisation per asset class.
  3. Estimation of the target for award of monetisation projects between FY26 and FY30.
  4. Analysis of assets that revert to monetising agency after concession period.
  5. Determination of the allocation of monetisation proceeds among government accounts.