Launch and Policy Context
National Monetisation Pipeline 2.0 Sets New Asset Reform Framework: The Union Finance Minister launched National Monetisation Pipeline 2.0 (NMP 2.0) on 24 February 2026. It is based on the Asset Monetisation Plan 2025-30 announced in the Union Budget 2025-26. The framework has been developed by NITI Aayog as a continuation of earlier asset monetisation reforms.
Asset monetisation refers to leveraging existing public infrastructure assets to generate revenue without increasing fiscal deficit. It focuses on value unlocking rather than outright sale of assets.
Static GK fact: NITI Aayog was established in 2015, replacing the Planning Commission, and functions as the premier public policy think tank of India.
Aggregate Monetisation Potential
Under NMP 2.0, the estimated monetisation potential is ₹16.72 lakh crore during FY26–FY30. This includes approximately ₹5.8 lakh crore of expected private sector investment.
The pipeline covers 12 sectors, making it one of the largest structured asset recycling programmes globally. It provides medium-term visibility to both public asset owners and private investors.
The largest share is expected from highways (26%), followed by power (17%), railways (16%), and ports (16%). Other sectors include petroleum and natural gas, civil aviation, warehousing, urban infrastructure, coal, mines, telecom, and tourism.
Static GK Tip: India’s total road network is the second largest in the world, and highways remain a major revenue-generating infrastructure category.
Revenue Distribution and Fiscal Impact
A major portion of proceeds under NMP 2.0 will accrue to the Consolidated Fund of India. Other channels include direct private investment, allocations to Public Sector Undertakings, Port Authorities, and State Consolidated Funds.
The mechanism supports fiscal consolidation by enabling capital recycling. Revenue generated from existing brownfield assets can be reinvested into new infrastructure creation.
Static GK fact: The Consolidated Fund of India is constituted under Article 266(1) of the Constitution of India and includes all revenues received by the Government of India.
Guiding Principles of Monetisation
NMP 2.0 continues the distinction between core and non-core assets introduced under NMP 1.0. The primary focus remains on core assets that are central to government service delivery.
Non-core assets such as land and buildings are considered only if further development is envisaged. Pure real estate monetisation without infrastructure objectives is avoided.
The policy encourages Public Private Partnership (PPP) models. Structures like Design-Build-Finance-Operate-Transfer (DBFOT) are included to ensure risk-sharing and operational efficiency.
Static GK fact: PPP frameworks in India gained structured momentum after the Kelkar Committee recommendations (2015) on infrastructure reforms.
Performance of NMP 1.0
The first phase, NMP 1.0, targeted ₹6 lakh crore between FY22 and FY25. Around 90% of the target has reportedly been achieved.
Thirteen sectors were included, with highways, railways, power, petroleum pipelines, and telecom accounting for nearly 72% of the total target.
The transition to NMP 2.0 reflects a scaling-up strategy aligned with India’s long-term infrastructure ambitions under the National Infrastructure Pipeline (NIP).
Static Usthadian Current Affairs Table
National Monetisation Pipeline 2.0 Sets New Asset Reform Framework:
| Topic | Detail |
| Launch Date | 24 February 2026 |
| Implementing Body | NITI Aayog |
| Policy Basis | Asset Monetisation Plan 2025-30 |
| Budget Link | Union Budget 2025-26 |
| Time Period | FY26–FY30 |
| Total Monetisation Potential | ₹16.72 lakh crore |
| Private Sector Investment Component | ₹5.8 lakh crore |
| Major Sector Share | Highways (26%), Power (17%), Railways (16%), Ports (16%) |
| Revenue Destination | Consolidated Fund of India and other public allocations |
| Previous Phase Target | ₹6 lakh crore (FY22–FY25) |
