The launch of National Monetisation Pipeline (NMP) 1.0 in 2021 stood out as a watershed moment. Since its inception, it galvanised nationwide attention on unlocking hidden value from public assets, setting an ambitious target worth Rs 6 trillion over 2021-22 to 2024-25 across 13 sectors spanning diverse ministries. The programme not only streamlined prior efforts via robust government support but also fostered a conducive regulatory environment for diverse monetisation modes. In turn, this marked the introduction of new investor classes by transforming operational assets into stable, investment-grade opportunities. And with time, the programme drew global and domestic pension funds, sovereign wealth funds and insurance firms – segments previously underexposed to core infrastructure – while unlocking debt financing from banks and bonds.
Fast forward to now, the outcomes have affirmed its efficacy. The programme achieved an impressive 89 per cent realisation of Rs 5.3 trillion (Rs 3.87 trillion in 2021-22 to 2023-24; and Rs 1.43 trillion in 2024-25). Highways, railways, power, petroleum and natural gas pipelines, and telecom dominated with 72 per cent of the pipeline (Rs 4.3 trillion), while warehousing, coal and mining, aviation, urban real estate, ports and stadiums accounted for Rs 1.7 trillion. The resounding success of Phase I of the programme has now set the stage for an even bolder chapter. Building on this momentum, under Union Budget 2025-26, the centre has launched NMP 2.0, targeting Rs 16 trillion over the five-year period from 2025-26 to 2029-30.
Redefining the asset recycling experience with NMP Phase II
At its heart, the overall NMP tackles a problem common to all economies – how can a government fund massive infrastructure expansion without sinking deeper into debt or crowding out private investors? In response to this, India’s monetisation strategy is not a hasty sale of public assets, nor is it a reckless gamble. The government’s idea is to take existing, revenue-generating public assets and allow private players to manage them for a fee. These proceeds can eventually be recycled directly into building new infrastructure. In essence, instead of allowing mature assets to passively yield incremental revenue, the government is choosing to unlock their value upfront and redeploy it into the upcoming infrastructure assets. This, in fact, is a refinement of public capital management.
The scale of NMP Phase II is massive. This national ambition truly warrants the global attention it is currently attracting. While asset recycling has been done before by some Australian states and parts of Europe, it has usually been limited to specific regions or sectors. India stands apart because of its national scale, its coverage across multiple industries, and its clear five-year road map.
To appreciate the recently launched plan better, numbers need to be put into perspective. Consider the original 2021 pipeline, which targeted Rs 6 trillion over four years. By the government’s own records, nearly 89 per cent of that goal was achieved. And now, between FY 2026 and FY 2030, the government aims to monetise assets worth approximately Rs 16.7 trillion. This target establishes it as one of the most ambitious asset-recycling programmes ever launched by a sovereign government.
Assets on offer
NMP 2.0 is not a blind leap, it is a calculated scale-up backed by a proven track record of delivery. The programme’s reach is also unprecedented, involving many ministries and PSUs. A number of brownfield assets have already been earmarked. This shifts asset recycling from a one-off budget trick into a predictable, multi-year investment stream.
The road sector leads with mega projects across states like Andhra Pradesh, Bihar, Gujarat, Kerala, Maharashtra and Punjab. Some of the projects that can be monetised include the Delhi-Amritsar-Katra expressway, the Gurugram-Kotputli-Jaipur bypass and the Amritsar-Jamnagar highway. Complementing these are 15 proposed multimodal logistics parks (MMLPs), including those at Nashik, Anantapur, Pune, Hyderabad, Varanasi, Visakhapatnam, Jammu, Coimbatore, Jogighopa and Silchar. The identified ropeway projects include three projects in Uttarakhand (Govindghat-Hemkund Sahib Ji, Sonprayag-Kedarnath Temple, and Kathgodam-Hanumangarhi Temple), one in Arunachal Pradesh (Tawang Monastery-PT Tso Lake), one in Assam (Kamakhya Temple) and one project in Maharashtra (Brahmagiri-Anjaneri, Nashik).
The Ministry of Railways plans to establish advanced Gati Shakti Cargo Terminals (GCTs) alongside the redevelopment of railway stations and commercial development of multiple rail land parcels. In tandem, the power sector is shifting towards green energy assets to attract private capital. In the petroleum and natural gas space, the asset pipeline includes a mix of brownfield and greenfield projects spread across the gas distribution, pipeline, storage and upstream segments.
In civil aviation, 26 airports have been identified and are planned to be developed using the operation, management and development agreement model. Additionally, the divestment of the Airports Authority of India’s (AAI) stake in one of its subsidiaries and in four joint venture (JV) airports is proposed. In the warehousing sector, the Food Corporation of India (FCI) and the Central Warehousing Corporation (CWC) have selected assets aligned with their schemes for encouraging private sector participation. For urban infrastructure, the sale of built-up area at various locations in New Delhi has been proposed, followed by utilisation of the proceeds for the development of general pool residential accommodation (GPRA) colonies.
The coal mine blocks identified comprise operational and partially developed mines as well as newly allocated blocks. The portfolio also encompasses mine developer and operator (MDO)-based projects, washeries and abandoned mine assets, alongside subsidiaries of Coal India Limited earmarked for equity divestment. Under mining, assets include a mix of mining lease blocks and composite licence blocks for commercial auction. For the telecom sector, dark fibre assets, along with land parcels belonging to Bharat Sanchar Nigam Limited have been identified. For the tourism sector, two brownfield hotels in New Delhi have been proposed for redevelopment during 2025-30.
Towards a mature approach in asset management
This forward-looking reform is a welcome move for the industry. However, there are social considerations as well. The public’s perception of asset monetisation will not be shaped by balance sheets, but by tangible results. If the programme leads to visibly better highways, higher-speed rail networks, modern logistics hubs and more resilient infrastructure, it will win public trust. Infrastructure should provide essential services, not just financial dividends. A highway that becomes too expensive for citizens or a port that prioritises profit over speed will quickly lose public trust. Hence, contracts must balance profit for investors with quality and affordability for the public.
Ultimately, NMP 2.0 is the definitive signal of a maturing economy. It demonstrates that India is no longer just a spender, but also a manager of a vast asset portfolio. The ultimate success of this initiative rests on transparent bidding processes, independent valuation mechanisms and a stable regulatory environment.
This commitment to creating good infrastructure does more than just fill the treasury; it reinforces global investor confidence towards the country. By prioritising such high standards, India is now building a legacy of financial maturity.
Harman Mangat
