{"id":67468,"date":"2026-02-24T18:38:48","date_gmt":"2026-02-24T13:08:48","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=67468"},"modified":"2026-02-24T18:42:11","modified_gmt":"2026-02-24T13:12:11","slug":"national-monetisation-pipeline-2-0","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/24-02-2026\/national-monetisation-pipeline-2-0","title":{"rendered":"National Monetisation Pipeline 2.0 (NMP 2.0)"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Recently, the Union Finance Minister has launched the <strong>National Monetisation Pipeline 2.0 (NMP 2.0)<\/strong>, targeting <strong>\u20b916.72 lakh crore<\/strong> through asset monetisation over the period <strong>2025\u201326 to 2029\u201330<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>National Monetisation Pipeline 2.0 (NMP 2.0)<\/strong> launched by the Union Finance Minister, builds on the original NMP (2021-2025) by outlining a \u20b916.72 lakh crore roadmap for FY 2026-2030.\u00a0<\/li>\n\n\n\n<li>It targets operational<strong> &#8220;brownfield&#8221; public assets<\/strong> like highways and railways to unlock value through private investment, funding new greenfield infrastructure without raising fresh debt or taxes.\u00a0<\/li>\n\n\n\n<li><strong>Developed by NITI Aayog<\/strong> with line ministries, it&#8217;s guided by the Ministry of Finance and monitored by the Core Group of Secretaries on Asset Monetisation (CGAM), chaired by the Cabinet Secretary.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Objectives<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Recycle existing assets to mobilize \u20b95.8 lakh crore in private funds for capex.<\/li>\n\n\n\n<li>Boost private sector visibility via PPPs, InvITs (Infrastructure Investment Trusts), cash flow securitization, and strategic sales.<\/li>\n\n\n\n<li>Standardize processes from NMP 1.0 lessons, ensuring time-bound execution and proceeds routed to Consolidated Fund of India, PSUs, or states.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Major Sectoral Allocation<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Highways, MMLPs, Ropeways: <\/strong>\u20b94.42 lakh crore<\/li>\n\n\n\n<li><strong>Power:<\/strong> \u20b92.77 lakh crore<\/li>\n\n\n\n<li><strong>Ports<\/strong>: \u20b92.64 lakh crore<\/li>\n\n\n\n<li><strong>Railways<\/strong>: \u20b92.62 lakh crore<\/li>\n\n\n\n<li><strong>Coal<\/strong>: \u20b92.16 lakh crore<\/li>\n\n\n\n<li><strong>Mines<\/strong>: \u20b91 lakh crore<\/li>\n\n\n\n<li><strong>Capital Recycling Model: <\/strong>Asset monetisation follows the principle of <strong>\u2018Asset Recycling\u2019<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Monetise operational brownfield assets;<\/li>\n\n\n\n<li>Use proceeds to fund greenfield infrastructure;<\/li>\n\n\n\n<li>It reduces fiscal burden, and public debt pressure.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Revenue Distribution: <\/strong>Proceeds are expected to flow primarily into <strong>Consolidated Fund of India, <\/strong>Direct private investment, PSU\/Port Authority allocations, and State Consolidated Funds.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Benefits of NMP 2.0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Capital Recycling:<\/strong> Unlocks value from brownfield assets and reinvests proceeds into new (greenfield) infrastructure projects without increasing public debt.<\/li>\n\n\n\n<li><strong>Fiscal Consolidation:<\/strong> Reduces pressure on government borrowing and supports better management of the fiscal deficit.<\/li>\n\n\n\n<li><strong>Enhanced Private Participation (PPP Boost):<\/strong> Deepens Public-Private Partnerships (PPP), improving efficiency, innovation, and risk-sharing in infrastructure development.<\/li>\n\n\n\n<li><strong>Attraction of Long-Term Institutional Capital:<\/strong> Draws pension funds, sovereign wealth funds, and global investors into Indian infrastructure.<\/li>\n\n\n\n<li><strong>Improved Asset Efficiency:<\/strong> Professional management by private players enhances operational efficiency and service quality.<\/li>\n\n\n\n<li><strong>Development of Financial Markets:<\/strong> Promotes instruments like <strong>InvITs and TOT models<\/strong>, broadening infrastructure as an asset class.<\/li>\n\n\n\n<li><strong>Boost to Logistics &amp; Competitiveness:<\/strong> Monetisation of highways, ports, railways, and logistics parks strengthens supply chains and reduces transaction costs.<\/li>\n\n\n\n<li><strong>Support to Viksit Bharat Vision:<\/strong> Accelerates infrastructure-led growth essential for achieving developed nation status by 2047.<\/li>\n\n\n\n<li><strong>Job Creation &amp; Multiplier Effect:<\/strong> Infrastructure expansion generates direct and indirect employment.<\/li>\n\n\n\n<li><strong>Citizen Participation:<\/strong> Public InvITs allow retail investors to participate in infrastructure growth.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges Ahead of NMP 2.0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Asset Valuation Concerns: <\/strong>Risk of <strong>undervaluation of public assets<\/strong>. Lack of transparent and standardized valuation mechanisms.<\/li>\n\n\n\n<li><strong>Political &amp; Public Opposition <\/strong>Perception of \u2018privatisation by stealth\u2019. Resistance from trade unions and civil society.<\/li>\n\n\n\n<li><strong>Regulatory &amp; Policy Uncertainty: <\/strong>Frequent policy changes can deter long-term investors. Need for strong dispute resolution mechanisms in PPP contracts.<\/li>\n\n\n\n<li><strong>Risk Allocation Issues: <\/strong>Improper risk-sharing between government and private players. Past PPP failures (e.g., traffic overestimation in highways) remain cautionary lessons.<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/indianexpress.com\/article\/business\/fm-sitharaman-launches-nmp-2-0-monetisation-2030-10548110\/\" target=\"_blank\" rel=\"noopener\">Source: IE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> Recently, the Union Finance Minister has launched the National Monetisation Pipeline 2.0 (NMP 2.0), targeting \u20b916.72 lakh crore through asset monetisation over the period 2025\u201326 to 2029\u201330. <\/li>\n<p><\/p>\n<p><strong> About <\/strong><\/p>\n<li class=\"ms-5\"> National Monetisation Pipeline 2.0 (NMP 2.0) launched by the Union Finance Minister, builds on the original NMP (2021-2025) by outlining a \u20b916.72 lakh crore roadmap for FY 2026-2030.\u00a0 <\/li>\n<li class=\"ms-5\"> It targets operational &#8220;brownfield&#8221; public assets like highways and railways to unlock value through private investment, funding new greenfield infrastructure without raising fresh debt or taxes.\u00a0 <\/li>\n<li class=\"ms-5\"> Developed by NITI Aayog with line ministries, it&#8217;s guided by the Ministry of Finance and monitored by the Core Group of Secretaries on Asset Monetisation (CGAM), chaired by the Cabinet Secretary. <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/24-02-2026\/national-monetisation-pipeline-2-0 \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-67468","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/67468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=67468"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/67468\/revisions"}],"predecessor-version":[{"id":67472,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/67468\/revisions\/67472"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=67468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=67468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=67468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}