News

Source — Source: PIB ///Category — GS Paper 2 ///Published — 2026-02-24 ///Exam — Both Prelims and Mains ///Tags — Rapid Fire, Quick Facts For Prelims, GS Paper - 2 ///Source — Source: PIB ///Category — GS Paper 2 ///Published — 2026-02-24 ///Exam — Both Prelims and Mains ///Tags — Rapid Fire, Quick Facts For Prelims, GS Paper - 2 ///

Source: PIB · GS Paper 2

National Monetisation Pipeline 2.0

The Union Finance Minister launched NMP 2.0, a second‑phase asset monetisation roadmap aiming to unlock Rs 16.72 lakh crore of resources for infrastructure. It builds on NMP 1.0’s near‑90% achievement of its Rs 6 lakh crore target and emphasizes asset recycling through PPPs, InvITs and cash‑flow securitisation.

2026-02-24

Published

Source: PIB

Source

Quiz Questions

Article

Key Facts and Data Points

NMP 1.0 target: Rs 6 lakh crore; achieved ~90% of the target.
NMP 2.0 estimated potential: Rs 16.72 lakh crore (including Rs 5.8 lakh crore private sector investment).
Sectors covered: Roads, Railways, Power, Oil & Gas, Civil Aviation, Ports, Telecom, Coal, Mines.
Governance: Monitored by the Core Group of Secretaries on Asset Monetisation (CGAM) chaired by the Cabinet Secretary.
Revenue allocation:
Consolidated Fund of India (Ministry‑led projects)
PSU/Port Authorities (entity‑led projects)
State Consolidated Fund (mining royalties)
Separate head for direct private investment in construction/maintenance.
Monetisation instruments: PPP concessions, Infrastructure Investment Trusts (InvITs), securitisation of cash flows.

Background and Context

The Asset Monetisation Plan 2025‑30 was announced in the Union Budget 2025‑26.
NITI Aayog developed the pipeline to operationalise the plan, providing visibility of idle or under‑utilised public assets to private investors.
Asset recycling aims to unlock capital from existing brownfield assets, allowing reinvestment in new infrastructure (CAPEX) without expanding fiscal deficit.

Significance for India / Governance / Policy

Fiscal prudence: Generates large non‑debt capital, supporting the government's goal of fiscal consolidation.
Infrastructure boost: Accelerates delivery of critical projects in transport, energy and logistics, aligning with the Viksit Bharat vision.
Private sector participation: Leverages private efficiency, risk‑sharing and innovation while retaining public ownership.
Whole‑of‑government approach: CGAM ensures inter‑ministerial coordination, reducing bottlenecks.
Revenue diversification: Proceeds flow to both central and state coffers, enhancing fiscal federalism.

Related Constitutional / Legal Provisions

Article 299(1) of the Constitution: Allows the Union to enter into contracts and agreements for the disposal of public assets.
Public Procurement (Preference to Make in India) Act, 2020: Provides a legal framework for PPPs and InvITs.
Companies Act, 2013 (Section 86): Governs the creation and operation of Infrastructure Investment Trusts.
Infrastructure Development Finance Company (IDFC) Act, 1997: Enables securitisation of cash flows from infrastructure projects.

References

National Monetisation Pipeline – PIB
Union Budget 2025‑26 documents
NITI Aayog reports on Asset Monetisation