Under the second phase of the National Monetisation Pipeline (NMP), the Centre may set an asset monetisation target of Rs 1.9 trillion to Rs2 trillion in 2025-26, with an emphasis on sectors including coal and mining, highways, power, and railways. A major focus area of asset recycling during this period would be infrastructure development on vacant public land.
NMP-II aims to reinvest around Rs 10 trillion in new projects. About Rs 5.65 trillion, or 94 per cent of the objective of Rs 6 trillion, was achieved by the government through asset monetisation under NMP 1.0. The money raised from monetisation might be used for capital expenditures by private parties, revenue sharing from operations, or upfront leasing payments.
In 2025-26, the National Highways Authority of India (NHAI) will be the major contributor to the NMP, followed by power, railways, and coal and mining. The asset monetisation during the period may be around 5-10 per cent more than the Rs 1.8 trillion achieved in 2024-25. Road assets could potentially be monetised to generate Rs 300 billion in 2025-26.
The industries that will provide asset classes and land parcels for NMP 2.0 include ports, warehousing and storage, coal and mines, telecommunications, civil aviation, roads, railways, electricity, petroleum and natural gas, and urban infrastructure, including housing and transportation. Private sector involvement in land development is expected to be a major trend in the future.