NMP 2.0 Infrastructure: Big announcement by Finance Minister Nirmala Sitharaman; 10 lakh crore target from NMP 2.0

• Central Government’s target of raising 10 lakh crores
• Another step towards ‘Developed India’
• ‘National Monetization Pipeline 2.0’ to be launched

NMP 2.0 Infrastructure: Finance Minister Nirmala Sitharaman announced the ‘National Monetization Pipeline (NMP) 2.0’ on Monday. A target of raising Rs.10 lakh crore has been set in five years. According to an official statement, the potential to raise a total of Rs 16.72 lakh crore through monetization of assets of central ministries and public sector undertakings under NMP 2.0 during financial years 2025-26 and 2029-30 is estimated. This includes private sector investment of Rs 5.8 lakh crore. NITI Aayog launched ‘NMP 1.0’ in 2021 for the period 2022-25.

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The target was to raise Rs 6 lakh crore by leasing existing public infrastructure assets to the private sector. 5.3 lakh crore raised during this phase. Which is approximately 89 percent of the target. Sitharaman said that NMP 2.0 is in line with the vision of ‘Developed India’. and will stimulate economic growth by accelerating infrastructure development. Urged the ministries to focus on process simplification and standardization.

Properties related to tourism areas were included. Sector-wise targets include Rs 4.42 lakh crore from highways, Rs 2.77 lakh crore from power, Rs 2.64 lakh crore from ports and Rs 2.62 lakh crore from railways. Additionally, assets related to petroleum and natural gas, civil aviation, warehousing, urban infrastructure, coal, telecommunications and tourism sectors are also included.

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Proceeds from asset demonetisation will be reinvested in new capital expenditure, reducing the budgetary burden. A ‘Core Group of Secretaries on Asset Monetisation’ chaired by the Cabinet Secretary will review the progress of the programme. Monetization will utilize capital market instruments such as Public-Private Partnership (PPP) concessions and Infrastructure Investment Trust (INVIT).

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