EconomicsSource: Press Information Bureau
Union Finance Minister Smt. Nirmala Sitharaman launches National Monetisation Pipeline 2.0 (NMP 2.0)
Tuesday, 24 February 2026
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The launch of the National Monetisation Pipeline 2.0 (NMP 2.0) by Union Finance Minister Smt. Nirmala Sitharaman marks a pivotal advancement in infrastructure enhancement through asset monetisation, crucial for UPSC aspirants studying GS Paper 3. Last Updated: 24-02-2026
Key Facts About National Monetisation Pipeline 2.0
- The National Monetisation Pipeline 2.0 (NMP 2.0) is developed by NITI Aayog.
- It is based on the ‘Asset Monetisation Plan 2025-30’ announced in the Union Budget 2025-26.
- Estimates an aggregate monetisation potential of ₹16.72 lakh crore over five years (FY 2026 to FY 2030).
- Includes private sector investment of ₹5.8 lakh crore.
- Monetisation instruments include PPP concessions, InvITs, and securitization of cash flows.
- Monitored by the Core Group of Secretaries on Asset Monetisation (CGAM).
- Proceeds allocated to Consolidated Fund of India, PSU/Port Authorities, and State Consolidated Fund.
India's Infrastructure Growth Strategy
NMP 2.0 is a strategic initiative aimed at optimizing resources and providing a roadmap for private investment in India's infrastructure. It aligns with India's economic goals by promoting efficient fund mobilization for capital expenditure (CAPEX) while minimizing government budgetary expenditure. This initiative is crucial for achieving the vision of Viksit Bharat, enhancing India's global competitiveness in infrastructure development.
UPSC Relevance
- GS Paper 3: Economic Development – Infrastructure: Energy, Ports, Roads, Airports, Railways, etc.
- Prelims Angle: Questions on asset monetisation, key sectors involved, and financial instruments used.
- Mains Angle: Analytical themes on public-private partnerships, infrastructure development, and economic policy impacts.
FAQ Section
- What is the National Monetisation Pipeline 2.0?
NMP 2.0 is a strategic initiative launched by the Indian government to monetize public sector assets, aiming to generate ₹16.72 lakh crore over five years, enhancing infrastructure development. - Why is NMP 2.0 important?
It is crucial for unlocking capital from existing assets, attracting private investment, and facilitating new infrastructure projects, thereby supporting India's economic growth. - What are the key features of NMP 2.0?
Key features include asset recycling, participation of multiple sectors, governance by CGAM, and use of PPP, InvITs, and securitization for transactions.
Detailed Coverage
- Launch of NMP 2.0 by Smt. Nirmala Sitharaman.
- Monetisation potential estimated at ₹16.72 lakh crore.
- Private sector investment targeted at ₹5.8 lakh crore.
- Implementation period from FY 2026 to FY 2030.
- Focus on Asset Recycling for reinvestment.
- Key sectors include Roads, Railways, Power, and Civil Aviation.
- Governance by Core Group of Secretaries on Asset Monetisation (CGAM).
- Revenue allocation to Consolidated Fund of India and PSU/Port Authorities.
- Use of Public-Private Partnerships (PPP) and Infrastructure Investment Trusts (InvITs).
- Aligned with the vision of Viksit Bharat.
- Promotes efficient fund mobilization for CAPEX.
- Asset monetisation targets include Highways, Railways, and Power.
- Rollout based on asset nature and market conditions.
- Significant for enhancing infrastructure quality.
- Aims to create value for both public and private sectors.
- Expected to drive India's growth momentum.
Economics