The Central government is likely to set an asset monetisation target of Rs 1.9 to two trillion for the financial year 2025–26 under Phase Two of the National Monetisation Pipeline (NMP), with a strong emphasis on sectors such as roads, power, railways, and coal and mines.

According to officials, development of vacant public land will also emerge as a key pillar of asset recycling in this phase. NMP Phase Two aims to build on the success of NMP 1.0 (FY 2022–25), which achieved Rs 5.65 trillion of the Rs six trillion target.

Monetisation formats will include upfront lease revenues, revenue-sharing arrangements, and capital investments by private entities.

The National Highways Authority of India (NHAI) is expected to contribute the most in FY 2025–26, potentially raising Rs three hundred bn via investment trust (InvIT) and toll-operate-transfer (TOT) contracts.

Sectors identified for monetisation include highways, railways, power, petroleum and natural gas, ports, civil aviation, storage, telecom, and urban infrastructure. To formalise the strategy, Niti Aayog will appoint a consultant to identify asset classes and land parcels, estimate their monetisation potential, and recommend innovative financing and development structures for private sector participation.

Source: Financial Express