National Monetisation Pipeline (NMP) 2.0

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What Exactly is National Monetisation Pipeline (NMP)?

  • Launched in 2021
  • Strategy prepared by NITI Aayog
  • Objective: Unlock value from brownfield public infrastructure assets

Brownfield Asset: An already operational infrastructure asset with an established revenue stream.

  • Monetisation is through:
    • PPP: A contractual arrangement where the private sector participates in financing, building, or operating public infrastructure while ownership usually remains with the government.
    • Toll-Operate-Transfer (TOT) : A model where a private entity pays an upfront fee to operate and collect tolls from an existing public highway asset for a fixed concession period. 
    • InvITs: A SEBI-regulated trust structure that pools investor funds to invest in revenue-generating infrastructure assets.
    • Long-term leases
  • Ownership remains with government

Core Idea: Recycle capital from existing assets to fund new infrastructure.

National Monetisation Pipeline (NMP) 1.0 (FY22–FY25):

  • Target: ₹6 lakh crore
  • Achievement: ~89%
  • High participation from:
    • Pension funds
    • Sovereign wealth funds

Major sectors involved: National Highways (TOT model), Power transmission, Railways, Airports and Telecom

National Monetisation Pipeline (NMP) 2.0 (FY26–FY30):

  • Target: ₹16.72 lakh crore
  • Based on: Asset Monetisation Plan 2025–30
  • Nearly 3 times larger than NMP 1.0.

Fiscal & Institutional Angle:

  • Proceeds accrue to:
    • Consolidated Fund of India
    • CPSUs
    • State entities (where applicable)
  • Supports:
    • Capital expenditure
    • Infrastructure expansion
    • Fiscal space creation
  • Covers multiple sectors (not just highways)
  • Focus on brownfield, not greenfield projects

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