NMP 2.0 Unveils Ambitious Rs 16.7 Lakh Crore Monetisation Target
The National Monetisation Pipeline (NMP) 2.0 has set a bold target of raising Rs 16.7 lakh crore through the monetisation of assets spanning 12 sectors, involving over 2,000 projects over a five-year period from fiscal year 2026 to 2030. This roadmap, prepared by the government's policy think tank Niti Aayog, was revealed on Monday, marking a significant step in India's infrastructure development strategy.
Enhanced Scope and Private Sector Involvement
The aggregate assets under the NMP 2.0 pipeline will include a substantial private sector investment of Rs 5.8 lakh crore, highlighting a collaborative approach to funding. Finance Minister Nirmala Sitharaman emphasized that this target is over 2.6 times higher than the first phase of NMP, urging ministries and departments to proactively surpass these indicated goals through dedicated efforts.
Distribution of Monetisation Inflows
According to the Niti Aayog document, the total monetisation inflow during FY26 to FY30 is expected to be distributed as follows: 43% will accrue to the Centre (consolidated fund of India), 15% to state-run firms, and 4% to state governments. It is estimated that 39% of the total target will constitute direct investment, underscoring the financial impact of this initiative.
Instruments for Asset Rollout
The assets and transactions identified under NMP 2.0 are set to be rolled out through a diverse range of instruments, including:
- Direct contractual instruments such as public-private partnership concessions.
- Capital market instruments like Infrastructure Investment Trusts (InvIT), IPO, FPO, and private placement.
- Securitisation and lease arrangements.
- Land-based development for sectors including railways, ports, telecom, and commercial auctions for mines and coal.
Comparison with NMP 1.0 and Future Projections
NMP 1.0 was launched by Sitharaman in 2021 with a target of raising Rs 6 lakh crore. Niti Aayog CEO B V R Subrahmanyam reported that it achieved 89% of this target, amounting to Rs 5.3 lakh crore. Looking ahead, Subrahmanyam stated that in the first year of NMP 2.0, the government aims to raise nearly Rs 2 lakh crore in 2025-26, setting a strong foundation for the subsequent years.
Important Note: The NMP includes transactions in brownfield assets of central ministries and public sector entities, explicitly excluding land from its scope, ensuring a focused approach on existing infrastructure enhancements.
