National Monetisation Pipeline (NMP 2.0)

The Niti Aayog has developed a comprehensive plan to monetise over 2,000 assets across 12 ministries, aiming to generate a revenue of ₹16.7 lakh crore under the National Monetisation Pipeline (NMP 2.0).

Financial Projections

• ₹10.8 lakh crore is expected to be generated by 2029-30, with the remaining ₹5.9 lakh crore thereafter.

Objective of NMP

• Enables recycling of productive public assets.
• Unlocks resources for reinvestment in new projects and capital expenditure.
• Facilitates efficient mobilisation of funds while minimising government budgetary outgo.

Performance of NMP 1.0

• Generated ₹5.3 lakh crore, 89% of the targeted ₹6 lakh crore over four years till 2024-25.

NMP 2.0 Focus Areas

• Key sectors: roads, power, ports, railways, and coal.
• Monetisation targets include: 
  1. Highways, logistics parks, and ropeways: ₹4.42 lakh crore.
  2. Power: ₹2.76 lakh crore.
  3. Ports: ₹2.63 lakh crore.
  4. Railways: ₹2.62 lakh crore.
  5. Coal: ₹2.16 lakh crore.
  6. Other sectors include mines, urban infrastructure, civil aviation, petroleum, telecom, and tourism.

Projected Fund Allocation

• ₹4.61 lakh crore to the Consolidated Fund of India.
• ₹4.18 lakh crore as direct private investment.
• ₹1.63 lakh crore to public sector undertakings or port authorities.
• ₹38,418 crore to the state consolidated fund.

Investment and Economic Impact

• 70% of central government proceeds could fund public projects, translating to ₹3.2 lakh crore in direct investments.
• Total central government or PSU proceeds: ₹6.2 lakh crore, potentially leading to a ₹12.2 lakh crore investment boost.
• With a capital expenditure multiplier of 3.25, this could increase GDP by approximately ₹40 lakh crore over 5-10 years.