National Monetisation Pipeline 2.0 (NMP 2.0)

₹16.72 Lakh Crore Target: The Promise and Pitfalls of NMP 2.0

On February 24, 2026, the Union Finance Minister formally launched the National Monetisation Pipeline 2.0 (NMP 2.0), setting an ambitious target of mobilizing ₹16.72 lakh crore through asset monetisation between FY 2025–26 and FY 2029–30. Bolstered by the success claimed under its predecessor, NMP 2.0 aims to recycle public sector assets like highways, railways, and ports to fund new greenfield infrastructure, while addressing fiscal consolidation and reducing debt dependency. This next phase reflects the government’s growing confidence in private-sector participation amidst fiscal pressures, but also raises critical questions about execution and long-term outcomes.

Why This Monetisation Wave Is Different

NMP 2.0 marks a significant escalation not only in financial targets but in sectoral inclusivity and operational mechanics. The original pipeline (NMP 1.0, 2021–25) targeted ₹6 lakh crore but struggled to achieve its projected scale, citing bureaucratic delays and operational bottlenecks. With its ₹16.72 lakh crore ambition, the second iteration shifts focus towards multi-faceted mechanisms such as PPP models, InvITs (Infrastructure Investment Trusts), cash flow securitization, and strategic asset sales. Highways alone dominate the roadmap, earmarked for ₹4.42 lakh crore, while railways, ports, power, and coal are allocated ₹2–3 lakh crore each.

The inclusion of large-scale projects like Multi-Modal Logistics Parks (MMLPs), ropeways, and mines redefines the scope of monetisation beyond traditional core assets. Furthermore, the pipeline now integrates lessons from NMP 1.0 by introducing standardized valuation models and assigning process timelines. But whether these refinements will address the longstanding issues of transparency and delays is uncertain.

The Machinery: Who’s Pulling the Strings?

A highly centralized institutional framework underpins NMP 2.0. The strategic planning falls under NITI Aayog, while execution monitoring is housed within the Core Group of Secretaries on Asset Monetisation (CGAM), chaired by the Cabinet Secretary. Key decisions lie ultimately with the Ministry of Finance, which oversees integration into fiscal policy. Notably, proceeds will flow into the Consolidated Fund of India, state coffers, Public Sector Undertakings, and port authorities—a complex redistribution model that demands tight process control.

While the emphasis on regulatory clarity and dispute resolution frameworks is noteworthy, the challenge lies in execution at the ministry level. For instance, public resistance and trade union agitation—especially for railways and coal—have historically impeded privatization efforts. Institutional mechanisms must actively address opposition rather than gloss over it.

The Claims vs. The Data: Unrealistic Targets?

What the headline figure of ₹16.72 lakh crore obscures is the uneven progress under NMP 1.0. Official reports claim that ₹1 lakh crore was achieved in FY 2021–22 under the inaugural pipeline—but this represents less than 20% of its total five-year target. NITI Aayog, while championing asset recycling as an efficient fiscal strategy, cannot sidestep asset valuation controversies, undervaluation risks, and missed deadlines in complex sectors like railways and coal.

Additionally, precedent complicates optimism. The public-private partnerships (PPPs) touted as a game-changer face credibility issues after multiple failed highway PPP projects suffered traffic forecasting errors. Recent successes via InvITs in power transmission provide a model worth replicating, but long-term investor confidence remains fragile due to fluctuating policy regimes. Data indicates that coal monetisation underpins ₹2.1 lakh crore of the new roadmap, yet legal uncertainties under the Mines and Minerals (Development and Regulation) Act might deter private bids.

Uncomfortable Questions About Sustainability

The real risk is not privatisation but poor accountability structures underpinning asset management. Without robust valuation mechanisms, the specter of underselling national assets looms large. What happens when concessionaires fail to deliver promised levels of efficiency? Additionally, the assumption that direct private investment will catalyze ₹5.8 lakh crore in capex remains speculative, hinging on external factors like global commodity markets and interest rates.

State-level implementation requires sharper scrutiny. Does political alignment—or the lack thereof—between the Centre and states risk derailing progress? Odisha’s refusal to cooperate in asset monetisation under NMP 1.0—citing inadequate compensation mechanisms—illustrates the friction often ignored by central press releases.

When Australia Monetised Ports: A Contrast

Australia provides a pointed comparative anchor. In 2018, the Australian government successfully monetised port facilities in Sydney and Melbourne through long-term leases, raising over AUD 16 billion. What separated Australia’s model from India’s nascent experiments was transparent regulatory oversight involving strong consumer protection rules alongside investor guarantees. India’s regulatory culture, marred by contract disputes and policy unpredictability, has yet to foster similar levels of investor trust.

Institutional Skepticism: Lessons Not Learned

The ambition of NMP 2.0 is laudable, and the ₹16.72 lakh crore target aligns well with India’s infrastructural ambitions under Viksit Bharat 2047. Yet, the design carries lingering blind spots. Questions about risk-sharing mechanisms under PPP contracts and frequent policy changes remain unanswered. The assumption that institutional investors like pension funds and sovereign wealth funds will rush towards Indian InvITs ignores historical hesitations regarding inadequate dispute-resolution frameworks.

Ultimately, the pipeline’s success might hinge less on financial targets and more on the machinery governing it. Without proactive state buy-ins, standardized bid processes, and stronger safeguards against undervaluation, NMP 2.0 may replicate—not transcend—the inconsistencies of its predecessor.

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