New Delhi, Feb 23, KNT: The Union Government on Monday launched the second phase of its National Monetization Pipeline, setting a target of ₹16.72 lakh crore in asset monetization between FY 2026 and FY 2030, in what is being positioned as a major pillar of infrastructure financing strategy.
Finance Minister Nirmala Sitharaman unveiled the framework, developed by NITI Aayog in consultation with infrastructure ministries, following the mandate announced in the Union Budget 2025-26.
Of the total estimated monetization potential, ₹5.8 lakh crore is expected to come from private sector participation. The remaining value is linked to central ministries and public sector entities through structured asset recycling mechanisms.
Officials present at the launch included the CEO of NITI Aayog and secretaries from major infrastructure-linked ministries such as Road Transport and Highways, Railways, Power, Petroleum and Natural Gas, Civil Aviation, Ports, Telecommunications, Coal, Mining, Housing and Urban Affairs and others.
The Finance Minister said the first phase of the pipeline had achieved nearly 90 percent of its ₹6 lakh crore target over four years. She described the second phase as more ambitious, with a target over 2.6 times larger than NMP 1.0.
Under the new roadmap, monetization will involve long-term leasing of brownfield public assets, partial divestment in listed entities, securitization of revenue streams and structured commercial auctions. The emphasis remains on unlocking value from operational public infrastructure without outright sale of ownership.
An empowered Core Group of Secretaries under the Cabinet Secretary will continue to oversee implementation.
The government maintains that the Programme is designed to recycle capital locked in mature assets and channel it into new infrastructure creation, while critics in past debates have raised concerns about valuation, long-term revenue implications and transparency in concession agreements.
The second phase positions asset monetisation as a central instrument in financing India’s infrastructure expansion over the next five years. [KNT]
