India Unveils ₹16.72 Lakh Crore Asset Monetisation Pipeline 2.0; PSU Stake Sales, IPOs to Drive Growth

The Government of India on Monday unveiled the National Monetisation Pipeline 2.0 (NMP 2.0) with a target valuation of ₹16.72 lakh crore over the five-year period from FY2026 to FY2030, marking a significant expansion of its asset monetisation strategy to unlock value from core public infrastructure and support economic growth.

Launched by Finance Minister Nirmala Sitharaman in New Delhi and prepared by NITI Aayog in consultation with infrastructure line ministries, the NMP 2.0 builds on the success of the first phase of the asset monetisation programme. The new pipeline aims to recycle underutilised public assets, generate non-tax revenue and catalyse private sector participation across sectors such as highways, railways, power, ports, telecommunications, urban infrastructure, mining and tourism.

Under the framework, central public sector enterprises (CPSEs) will monetise assets through equity dilution, initial public offerings (IPOs), follow-on public offerings (FPOs), public-private partnerships and other market instruments. The proceeds are expected to strengthen the financial position of PSUs and enable reinvestment in new infrastructure and capital expenditure projects.

The monetisation roadmap envisages stake sales in subsidiaries of major PSUs, including plans for IPO programmes in entities such as city gas distribution firms and infrastructure subsidiaries, which are forecast to attract substantial investor interest and provide fresh capital for expansion from FY27 onwards.

The NMP 2.0 aligns with the Centre’s broader development agenda, with the Finance Minister emphasising the importance of process simplification and strategic asset utilisation to achieve results within prescribed timelines. By unlocking value from more than 2,000 assets across 12 sectors, the initiative seeks to catalyse growth and support India’s long-term infrastructure financing needs.