The government has rolled out an ambitious second phase of its asset monetisation programme, setting a target of ₹16.72 lakh crore under National Monetisation Pipeline (NMP) 2.0 for the period between FY2026 and FY2030. The objective is clear — unlock value from existing public infrastructure and channel those funds into building new projects to accelerate India’s growth story.
Finance Minister Nirmala Sitharaman said the expanded programme will play a crucial role in advancing the ‘Viksit Bharat’ vision. The Centre estimates that the plan could also crowd in nearly ₹5.8 lakh crore in private investment over five years, giving a strong push to infrastructure development across sectors.
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What Is NMP 2.0?
At its core, NMP 2.0 is a strategy to generate revenue from already built public assets without selling them outright. Under the framework, the government will lease out operational assets — such as highways, railway tracks, airports, power transmission lines and gas pipelines — to private players for a fixed tenure.
In return, the government receives upfront or structured payments, which are then reinvested into new greenfield infrastructure projects. Ownership of the assets remains with the government; private entities are responsible for operation, maintenance and performance during the concession period.
The model aims to strike a balance — unlock capital tied up in brownfield assets while ensuring public ownership is retained.
Lessons from Phase One
The first phase of the National Monetisation Pipeline had set a target of ₹6 lakh crore, of which nearly 90% was achieved, according to official estimates. Toll-operate-transfer road bundles, power grid assets and select railway freight corridors were among the key contributors.
Encouraged by this outcome, the government has scaled up both the scope and ambition of the second phase. The ₹16.72 lakh crore target is roughly 2.6 times larger than that of NMP 1.0, reflecting a sharper push to mobilise non-tax resources.
This time, there is added emphasis on simplifying processes, ensuring faster execution and reducing procedural bottlenecks.
Which Sectors Are in Focus?
NMP 2.0 will cover a wide spectrum of infrastructure sectors. Roads and highways, railways, civil aviation, power, coal, natural gas pipelines, warehousing and urban infrastructure are expected to feature prominently.
The government’s approach is to ensure that existing assets do not remain underutilised. Instead, they should generate predictable revenue streams while private operators bring in efficiency and performance improvements.
There is also growing attention on logistics and digital infrastructure, as these sectors are seen as critical enablers of long-term economic expansion.
What It Means for Citizens
Officials argue that the funds mobilised through asset monetisation will be channelled into new roads, railway lines, airport expansions and power projects. This, in turn, could create employment opportunities and stimulate broader economic activity.
Improved infrastructure reduces logistics costs, strengthens supply chains and enhances connectivity. Over time, these factors contribute to higher competitiveness and stronger investment inflows.
Importantly, the government has reiterated that asset monetisation is not privatisation. The underlying public assets remain in government ownership, with private participation limited to operational management for a defined period.
Challenges Ahead
While the target is ambitious, execution will be critical. Transparent bidding, fair asset valuation and sustained investor appetite will determine the programme’s success. Global economic uncertainty and tight financial conditions could pose hurdles in mobilising large-scale private capital.
There will also be scrutiny to ensure that service quality does not deteriorate and that users are not burdened with excessive charges post-monetisation.
The Road Ahead
In the coming months, individual ministries are expected to publish detailed asset pipelines and timelines. Infrastructure developers and investors will closely track which assets are prioritised and how concession terms are structured.
The ₹16.72 lakh crore headline figure signals more than just fiscal planning — it underscores a strategic shift in how the government intends to finance infrastructure. If implemented efficiently, NMP 2.0 could reshape India’s infrastructure landscape over the next five years and provide fresh momentum to long-term growth.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
