Source: News on Air
Context:
The Government of India has launched the second phase of the National Monetisation Pipeline (NMP 2.0), aiming to mobilise ₹16.72 trillion by monetising public assets between FY2026 and FY2030.
What is NMP 2.0?
National Monetisation Pipeline (NMP 2.0) is the Government of India’s second phase of asset monetisation covering FY 2026–2030.
It aims to unlock value from existing public infrastructure assets by leasing or monetising them and using the proceeds to fund new infrastructure projects.
Purpose of NMP 2.0
- To recycle value from existing public infrastructure assets.
- To unlock funds for new infrastructure and capital expenditure (capex).
- To mobilise resources without increasing government budgetary spending.
- To improve efficiency in infrastructure financing.
This model allows the government to generate revenue from operational assets while retaining ownership in most cases.
How Asset Monetisation Works
Government retains ownership but grants operational rights to private players for a fixed period.
Private operator:
- invests
- operates
- maintains
- pays upfront or periodic fee
After the concession period, the asset returns to the government.
This is different from privatisation (no permanent transfer of ownership).
Types of Assets Monetised
Primarily brownfield assets (already operational), such as:
- highways
- railway infrastructure
- transmission lines
- airports and ports
- warehouses and logistics parks
