NMP 2.0 Eyes Rs 2,765 Billion Power Asset Monetisation by FY30
POWER & RENEWABLE ENERGY

NMP 2.0 Eyes Rs 2,765 Billion Power Asset Monetisation by FY30

The government is targeting asset monetisation of Rs 2,765 billion (bn) from power sector projects by FY30 under the National Monetization Pipeline 2.0 (NMP 2.0) released by Niti Aayog. The pipeline sets a FY26 milestone of Rs 499 billion (bn) for the sector. Officials said the plan is intended to channel private capital into existing and underutilised infrastructure without adding fiscal pressure on the government. The programme frames asset monetisation as a means to free up capital for infrastructure expansion and modernisation across the energy chain.

The asset classes in the power sector include eight operational hydro assets of the National Hydroelectric Power Corporation (NHPC) and SJVN Limited (SJVN), transmission assets of the Power Grid Corporation of India (PGCIL) and inter?state transmission lines. The initiative also involves partial equity divestment in step?down subsidiaries of power public sector undertakings. Investments made in partnership projects under Build?Own?Operate?Transfer arrangements will be counted as monetisation value under NMP 2.0. The hydro assets are operational and expected to offer predictable cash flows suitable for long?term securitisation structures.

The preferred mode for hydro assets is securitisation of future cash flows by the relevant public sector undertaking. PGCIL plans to monetise its transmission assets through securitisation of annuity revenues while inter?state transmission line projects will be awarded on a Build?Own?Operate?Transfer basis through tariff?based competitive bidding. Taken together, the total cash flow targeted from private investment in power projects by FY30 amounts to Rs 2,427.88 billion (bn). Securitisation and annuity structures are intended to match investor appetite for steady returns while enabling the companies to monetise non?core or long?dated cash streams.

Asset monetisation is described as an alternative financing route that leverages existing or underutilised infrastructure assets to generate revenue and attract fresh investment. The additional capital unlocked through asset monetisation is intended to be reinvested in the creation of new assets. Officials expect the approach to provide monetary inflow without extra fiscal strain on the government. Authorities highlighted that recycling proceeds into new projects should support capacity addition and improve service delivery without increasing the deficit.

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The government is targeting asset monetisation of Rs 2,765 billion (bn) from power sector projects by FY30 under the National Monetization Pipeline 2.0 (NMP 2.0) released by Niti Aayog. The pipeline sets a FY26 milestone of Rs 499 billion (bn) for the sector. Officials said the plan is intended to channel private capital into existing and underutilised infrastructure without adding fiscal pressure on the government. The programme frames asset monetisation as a means to free up capital for infrastructure expansion and modernisation across the energy chain. The asset classes in the power sector include eight operational hydro assets of the National Hydroelectric Power Corporation (NHPC) and SJVN Limited (SJVN), transmission assets of the Power Grid Corporation of India (PGCIL) and inter?state transmission lines. The initiative also involves partial equity divestment in step?down subsidiaries of power public sector undertakings. Investments made in partnership projects under Build?Own?Operate?Transfer arrangements will be counted as monetisation value under NMP 2.0. The hydro assets are operational and expected to offer predictable cash flows suitable for long?term securitisation structures. The preferred mode for hydro assets is securitisation of future cash flows by the relevant public sector undertaking. PGCIL plans to monetise its transmission assets through securitisation of annuity revenues while inter?state transmission line projects will be awarded on a Build?Own?Operate?Transfer basis through tariff?based competitive bidding. Taken together, the total cash flow targeted from private investment in power projects by FY30 amounts to Rs 2,427.88 billion (bn). Securitisation and annuity structures are intended to match investor appetite for steady returns while enabling the companies to monetise non?core or long?dated cash streams. Asset monetisation is described as an alternative financing route that leverages existing or underutilised infrastructure assets to generate revenue and attract fresh investment. The additional capital unlocked through asset monetisation is intended to be reinvested in the creation of new assets. Officials expect the approach to provide monetary inflow without extra fiscal strain on the government. Authorities highlighted that recycling proceeds into new projects should support capacity addition and improve service delivery without increasing the deficit.

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