FM launches NMP 2.0, sets eye on Rs 16.72 lakh cr of asset monetisation by 2030, Pg15

Key Highlights:

• National Monetisation Pipeline 2.0 (NMP 2.0) launched with a target of Rs 16.72 lakh crore through asset monetisation by 2030.
• NITI Aayog developed NMP 2.0, building upon the 'Asset Monetisation Plan 2025-30' announced in the Union Budget for 2025-26.
• NMP 1.0 achieved 89% of its Rs 6 lakh crore target from FY22 to FY25, fostering institutional investor involvement.
• Highways, power, ports, and railways are key sectors in NMP 2.0, with significant monetisation potential.

Detailed Insights:

• NMP 2.0 aims to unlock value from underutilised public infrastructure assets through various methods like transfer of assets, divestment, securitisation, and strategic commercial auctions.
• The initiative seeks to attract investments from pension and sovereign wealth funds, enhancing infrastructure development in India.
• Public-Private Partnerships (PPPs) are crucial for NMP 2.0, improving public sector efficiency, service quality, and attracting private sector investment.
• The plan includes monetisation of 21,300 km of highways, 15 Multi-Modal Logistics Parks, and 6 ropeways, expecting Rs 4.42 lakh crore.
• NMP 2.0 aligns with the Viksit Bharat initiative, aiming to accelerate infrastructure development and upgrade transportation networks.

Key Concepts Involved:

• Asset Monetisation: Creating new revenue streams by unlocking the economic value of existing public assets.
• Infrastructure Investment Trust (InvIT): Investment vehicles that allow direct participation of citizens in infrastructure development.
• Public-Private Partnership (PPP): Collaboration between a government agency and a private sector company to finance, build, and operate projects.