Context: The Central Government is preparing to launch Phase II of the National Monetisation Pipeline (NMP) with an ambitious asset monetisation target of Rs 10 lakh crore over 5 years (FY26-FY30).
Relevance of the Topic: Prelims: Key facts related to NMP 2.0; Asset Monetisation.
What is Asset Monetisation?
- Asset Monetisation is defined as transfer of core assets owned by the Government to the private sector for a limited period.
- Ownership of the assets would continue to remain with the Government. The assets would be only transferred to the private sector for a limited duration based upon the contract.
- The government uses the money earned from monetisation to fund new infrastructure projects without taking on more debt. This is called capital recycling – using old assets to fund new ones.

National Monetisation Pipeline (NMP 1.0)
- In Phase 1 (FY22 - FY25): government planned to raise Rs 6 lakh crore from Asset Monetisation. The government was able to manage about Rs 5.65 lakh crore, or 94% of the target.
- NMP includes monetisation of core assets (central to the business objectives of the government). Core infrastructure assets include roads, ports, airports, telecom, railways, warehousing, energy pipelines, power generation, power transmission, hospitality and sports stadiums.
- NMP does not include monetisation of non-core assets (such as land, buildings etc).
- Initiative of: NITI Aayog, in collaboration with the Ministry of Finance.
National Monetisation Pipeline (NMP 2.0):
- Phase 2 (FY26 - FY30): Target of Rs 10 lakh crore in total over 5 years, and in FY26 the target is Rs 1.9 - 2 lakh crore.
- Asset classes and land parcels to be monetised: Highways, railways, power, petroleum and natural gas, civil aviation, ports, warehousing and storage, urban infrastructure (housing and transport), coal and mines, and telecom.
- New focus area: Developing vacant public land in partnership with private companies.
- A consultant will be hired to identify government assets and land suitable for monetisation, estimate how much money or investment these assets can attract and suggest new models of public-private partnerships to speed up infrastructure growth.
- Monetisation proceeds could be in the forms of upfront revenues for leases, revenue sharing from operations, and capital expenditure by private parties.









