Union Finance Minister Nirmala Sitharaman
| Photo Credit:
PTI
The government aims to award assets for moentisation having value of more than Rs 16.72 lakh crore through National Monetisation Pipeline 2.0 (NMP 2.0). This program was launched by Finance Minister Nirmala Sitharaman on Monday.
“The NMP 2.0 estimates aggregate monetisation potential of ₹16.72 lakh crore, including private sector investment of ₹5.8 lakh crore under asset monetisation pipeline of Central ministries and public sector entities, over the five-year period from FY 2026 to FY30,” a Finance Ministry statement said. New version of the NMP is over 2.6 times higher than that under NMP 1.0.
In her address at the launch, the Finance Minister complimented all the ministries/ departments of the government and NITI Aayog for meeting nearly 90 per cent of the target of ₹6 lakh crore set for 4 years in the implementation of NMP 1.0.
Highlighting the significance of asset monetisation, she said NMP enables recycling of productive public assets, thereby unlocking resources for reinvestment in new projects and capital expenditure. She noted that this approach facilitates efficient mobilisation of funds for CAPEX in public assets while minimising budgetary outgo of the government.
NMP 2.0 is a culmination of insights, feedback and experiences consolidated through multi-stakeholder consultations undertaken by NITI Aayog, Ministry of Finance and line ministries. Several rounds of discussion have been held by NITI Aayog with the stakeholders.
According to the statement, an empowered Core Group of Secretaries on Asset Monetisation (CGAM) under the chairmanship of Cabinet Secretary will continue to monitor the progress of the Asset Monetisation programme. “The government is committed to making the asset monetisation programme, a value accretive proposition both for public sector and private investors/developers, through improved infrastructure quality and operations & maintenance,” the statement said.
The proceeds from asset monetisation projects are allocated to four different heads depending on the implementing agency of the project, as well as the project’s mode of monetisation. Any type of Government revenue from a monetisation project that is implemented by a Central Ministry (for example, revenue share, premium, lease rental, royalty) shall flow to Consolidated Fund of India.
Proceeds from monetisation activities undertaken by PSUs shall accrue to the concerned PSU (similar norm shall be followed for Major Port Authorities). Certain projects under NMP 2.0 are expected to generate revenues to the State Governments, especially those belonging to the mines and coal sectors (royalty payments). These proceeds shall accrue to State Consolidated Fund. “Direct investment (private)will record the investment by the private sector in monetisation projects that involve construction and/or major maintenance components,” the statement added.
It is estimated that largest portion of the proceeds under NMP 2.0 shall accrue to Consolidated Fund of India, followed by direct investment (private), PSU or Port Authority allocation and State Consolidated Fund, the statement concluded.
Published on February 23, 2026