Synopsis: On 23 February 2026, Finance Minister Nirmala Sitharaman launched National Monetisation Pipeline 2.0, targeting Rs. 16.72 lakh crore asset monetisation during FY26–30 to fund infrastructure and advance the Viksit Bharat vision across highways, railways, power, ports, coal and mining sectors.
The National Monetisation Pipeline (NMP) 2.0 is useful because it helps the government unlock value from existing public assets and reinvest the funds into new infrastructure projects. This reduces pressure on the budget, encourages private sector efficiency, creates jobs, and supports faster economic growth in line with the Viksit Bharat vision.
Launch of NMP 2.0
Union Finance Minister Nirmala Sitharaman launched the second phase of the National Monetisation Pipeline 2.0 (NMP 2.0) on 23 February 2026. The initiative has been developed by NITI Aayog in consultation with infrastructure ministries, following the announcement of the Asset Monetisation Plan 2025–30 in the Union Budget 2025–26.
NMP 2.0 is aligned with the Government’s Viksit Bharat vision, aiming to accelerate infrastructure development and sustain India’s growth momentum through systematic asset monetisation.
Monetisation Target
The pipeline estimates a total monetisation potential of Rs. 16.72 lakh crore for the five-year period from FY 2026 to FY 2030. This includes Rs. 5.8 lakh crore of private sector investment under the asset monetisation framework of Central ministries and public sector entities. The new target is over 2.6 times higher than that of NMP 1.0.
Smt. Sitharaman stressed the need for process simplification and standardisation to ensure seamless monetisation. She urged ministries to take proactive steps to exceed the ambitious targets set under NMP 2.0.
Performance of NMP 1.0
The Finance Minister appreciated ministries and departments for achieving nearly 90% of the Rs. 6 lakh crore target set for four years under NMP 1.0. She emphasised that lessons learned from the first phase should guide smoother implementation in NMP 2.0.
Objective and Economic Significance of Asset Monetisation
Asset monetisation enables the recycling of operational public infrastructure assets by transferring their revenue rights to private players for a defined period. This approach unlocks value from existing assets and channels the realised funds into new infrastructure creation and capital expenditure (CAPEX).
By doing so, the Government can mobilise substantial resources for public investment while minimising direct budgetary outgo. The programme is designed to be value-accretive for both the public sector and private investors through improved infrastructure quality, operations, and maintenance standards.
Ministries Covered Under the Pipeline
The launch event was attended by the CEO of NITI Aayog and Secretaries from key infrastructure ministries covered under NMP 2.0, including Road Transport and Highways, Railways, Power, Petroleum and Natural Gas, Civil Aviation, Ports, Shipping and Waterways, Telecommunications, Tourism, Food and Public Distribution, Mining, Coal, and Housing and Urban Affairs. Senior officials from the Ministry of Finance, the Ministry of Law, and the Chief Economic Adviser were also present on the occasion.
Allocation of Proceeds from Asset Monetisation
The proceeds generated from asset monetisation projects under NMP 2.0 are allocated across four heads based on the implementing authority and the mode of monetisation.
Revenues from projects executed by Central Ministries such as revenue share, upfront premiums, lease rentals, or royalties are credited to the Consolidated Fund of India.
In cases where monetisation is undertaken by Public Sector Undertakings (PSUs) or Major Port Authorities, the proceeds accrue directly to the respective entities. Certain projects, particularly in the mining and coal sectors, generate royalty revenues for State Governments, which are credited to the respective State Consolidated Funds. Additionally, a separate head records direct private sector investments in projects that involve construction and/or major maintenance components.
The largest share of proceeds under National Monetisation Pipeline (NMP) 2.0 is expected to be credited to the Consolidated Fund of India, followed by private sector direct investments, allocations to PSUs or Port Authorities, and a portion flowing to the respective State Consolidated Funds.
The table below represents the sector-wise award targets under NMP 2.0 for the period FY 2026–30, expressed in Rs. crore.
| Sector | Total Monetisation Value (TMV) | Percentage of total |
|---|---|---|
| Highways, MMLPs, Ropeways | 4,42,000 | 26% |
| Railways | 2,62,300 | 16% |
| Power | 2,76,500 | 17% |
| Petroleum and natural gas | 16,300 | 1% |
| Civil aviation | 27,500 | 2% |
| Ports | 2,63,700 | 16% |
| Warehousing and storage | 10,000 | 1% |
| Urban infrastructure | 52,000 | 3% |
| Coal | 2,16,000 | 13% |
| Mines | 1,00,000 | 6% |
| Telecom | 4,800 | 0.30% |
| Tourism | 1,200 | 0.10% |
| Total | 16,72,300 | 100% |
The table below outlines the year-wise distribution of the total monetisation value targeted under NMP 2.0 for the period FY 2026 to FY 2030.
| Sector | FY26 | FY27 | FY28 | FY29 | FY30 | Total Monetisation Value (TMV) |
|---|---|---|---|---|---|---|
| Highways, MMLPs, Ropeways | 59,140 | 68,770 | 91,800 | 91,800 | 91,800 | 4,42,000 |
| Railways | 40,580 | 58,451 | 50,464 | 59,214 | 53,591 | 2,62,300 |
| Power | 49,900 | 54,450 | 62,700 | 54,725 | 54,725 | 2,76,500 |
| Petroleum and natural gas | 4,240 | 4,288 | 4,658 | 1,557 | 1,557 | 16,300 |
| Civil aviation | – | 9,083 | 5,537 | 4,034 | 8,846 | 27,500 |
| Ports | 40,854 | 55,729 | 55,729 | 55,729 | 55,659 | 2,63,700 |
| Warehousing and storage | 4,318 | 1,813 | 1,941 | 958 | 970 | 10,000 |
| Urban infrastructure | – | 5,000 | 5,000 | 21,000 | 21,000 | 52,000 |
| Coal | 31,540 | 48,170 | 47,580 | 45,230 | 43,480 | 2,16,000 |
| Mines | 18,101 | 18,986 | 19,963 | 20,940 | 22,010 | 1,00,000 |
| Telecom | 820 | 875 | 940 | 1,035 | 1,130 | 4,800 |
| Tourism | – | 820 | – | – | 380 | 1,200 |
| Total | 2,49,493 | 3,26,435 | 3,46,312 | 3,68,852 | 3,81,208 | 16,72,300 |
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