- Why in news
- On 23 February 2026, Union Finance Minister Nirmala Sitharaman launched NMP 2.0, the second asset monetisation pipeline, valued at ₹16.72 lakh crore for FY2026 to FY2030.
- What it is
- The National Monetisation Pipeline is a government plan to lease or transfer operating public infrastructure assets to private players for a fixed period. The money raised is recycled into new infrastructure and capital expenditure. NMP 2.0 is the second phase, prepared by NITI Aayog under the Asset Monetisation Plan 2025-30 announced in Budget 2025-26.
- Size and period
- NMP 2.0 estimates total monetisation potential of ₹16.72 lakh crore over FY2026 to FY2030, including ₹5.8 lakh crore of private investment.
- Who prepared it
- NITI Aayog prepared it with infrastructure line ministries, on the mandate of the Asset Monetisation Plan 2025-30 in Budget 2025-26.
- Monitoring body
- The Core Group of Secretaries on Asset Monetisation, chaired by the Cabinet Secretary, continues to monitor progress.
- Methods of monetisation
- Asset monetisation includes limited-period transfer of assets, partial divestment of listed entities, securitisation of cash flows and strategic commercial auctions. Instruments include PPP concessions and InvITs.
- Where proceeds go
- Revenue from projects run by Central ministries goes to the Consolidated Fund of India. PSU proceeds go to the PSU, and mines and coal royalties go to State Consolidated Funds.
Don’t confuse with Monetisation vs disinvestment: Monetisation transfers use or operation of assets for a period, and government keeps ownership. Disinvestment sells government equity in a PSU.
Don’t confuse with NMP 1.0 vs NMP 2.0: NMP 1.0 had a ₹6 lakh crore target over 4 years. NMP 2.0 has ₹16.72 lakh crore over 5 years (FY2026-30).
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Recycles value from operating public assets into new infrastructure and capex, reducing the burden on the Budget.
- Gives private investors visibility on assets, supporting the Viksit Bharat infrastructure push.
Problems
- NMP 1.0 reached only about 90% of its target, so a much larger target is hard to meet.
- Values are indicative and can change at transaction time; pricing, risk sharing and process delays can hold up deals.
Way forward
- Simplify and standardise processes so monetisation transactions move quickly.
- Build deeper capital market routes such as InvITs and keep the framework value-accretive for both public and private parties.
Put in your answer
Monitoring mechanism: The Core Group of Secretaries on Asset Monetisation under the Cabinet Secretary monitors progress.
- 2022Mains GS3 · Q1Why PPP is needed in infrastructure, and its role in railway station redevelopment
- 2020Mains GS3 · Q11Factors to consider in designing a public-private concession agreement
- 2017Mains GS3 · Q3Development of airports through PPP joint ventures, and the challenges faced
- 2023Prelims Q21Tax treatment of InvIT interest and dividends, and whether InvITs are borrowers
- 2025Prelims Q10Whether borrowings and disinvestment are capital receipts creating government liabilities
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The National Monetisation Pipeline 2.0 was prepared by NITI Aayog in consultation with infrastructure line ministries, on the mandate of the Asset Monetisation Plan 2025-30 announced in the Union Budget 2025-26.
- 2.Progress of the asset monetisation programme under NMP 2.0 is monitored by a Core Group of Secretaries chaired by the Union Finance Minister.
- 3.Under NMP 2.0, royalty proceeds from mines and coal projects are expected to accrue to the Consolidated Fund of India.
Which of the statements given above is/are correct?
True or false?
1 of 2
Statements the way Prelims prints them. Say first, then see the fact.
1.NMP 2.0 covers the period FY2026 to FY2030 with an indicative value of ₹16.72 lakh crore.
True. Five years, ₹16.72 lakh crore.
2.Progress of the asset monetisation programme is monitored by a Core Group of Secretaries chaired by the Union Finance Minister.
False. The Core Group (CGAM) is chaired by the Cabinet Secretary.
Written by us from the release, not by UPSC; checked by a second model.
Mains practice
15 marks · 250 words
The Union Finance Minister has launched the National Monetisation Pipeline 2.0, valued at ₹16.72 lakh crore for FY2026 to FY2030. Discuss the rationale and key features of the pipeline, and critically examine the challenges in asset monetisation and the way forward.
Worth revising until Prelims 2027: most news questions come within two years of the event.