NMP 2.0 Targets Rs2.765 Trillion (tn) Power Asset Monetisation By FY30
POWER & RENEWABLE ENERGY

NMP 2.0 Targets Rs2.765 Trillion (tn) Power Asset Monetisation By FY30

Niti Aayog has released the National Monetization Pipeline 2.0 setting a target of Rs2,765 billion (bn) for power sector asset monetisation by fiscal year 2030. The pipeline also sets a target of Rs499 billion (bn) for fiscal year 2026. The total cash flow expected from private investment in power projects by fiscal year 2030 has been set at Rs2,427.88 billion (bn).

The power sector asset classes in the pipeline comprise eight operational hydro assets owned by NHPC and SJVN, transmission assets of Power Grid Corporation of India Limited (PGCIL), inter-state transmission lines (ISTL) and partial equity dilution of step down subsidiaries of public sector undertakings (PSUs). The eight hydro assets are proposed to be monetised through securitisation of future cash flows by the relevant PSU. PGCIL intends to monetise transmission assets through securitisation of annuity revenues. ISTL projects will be awarded on a build own operate transfer model through tariff based competitive bidding and the investments made in these partnership projects will be counted towards monetisation.

The pipeline envisages partial equity divestment in step down subsidiaries of power PSUs as an additional route to unlock capital. Monetisation value for ISTL and partnership projects will be measured by the investments made by private partners under the agreed models. The approach preserves government ownership while generating revenue that can be recycled to create new infrastructure.

Asset monetisation is presented as an alternative financing mechanism to leverage existing or under utilised infrastructure assets to raise fresh capital without adding fiscal pressure. The released pipeline aims to channel private funds into the energy sector to support capacity expansion and improve asset utilisation. Niti Aayog expects the additional capital unlocked to be reinvested in asset creation over the remainder of the decade.

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Niti Aayog has released the National Monetization Pipeline 2.0 setting a target of Rs2,765 billion (bn) for power sector asset monetisation by fiscal year 2030. The pipeline also sets a target of Rs499 billion (bn) for fiscal year 2026. The total cash flow expected from private investment in power projects by fiscal year 2030 has been set at Rs2,427.88 billion (bn). The power sector asset classes in the pipeline comprise eight operational hydro assets owned by NHPC and SJVN, transmission assets of Power Grid Corporation of India Limited (PGCIL), inter-state transmission lines (ISTL) and partial equity dilution of step down subsidiaries of public sector undertakings (PSUs). The eight hydro assets are proposed to be monetised through securitisation of future cash flows by the relevant PSU. PGCIL intends to monetise transmission assets through securitisation of annuity revenues. ISTL projects will be awarded on a build own operate transfer model through tariff based competitive bidding and the investments made in these partnership projects will be counted towards monetisation. The pipeline envisages partial equity divestment in step down subsidiaries of power PSUs as an additional route to unlock capital. Monetisation value for ISTL and partnership projects will be measured by the investments made by private partners under the agreed models. The approach preserves government ownership while generating revenue that can be recycled to create new infrastructure. Asset monetisation is presented as an alternative financing mechanism to leverage existing or under utilised infrastructure assets to raise fresh capital without adding fiscal pressure. The released pipeline aims to channel private funds into the energy sector to support capacity expansion and improve asset utilisation. Niti Aayog expects the additional capital unlocked to be reinvested in asset creation over the remainder of the decade.

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