The Centre may set an asset monetisation target of `1.9-2 lakh crore in FY26 under the second phase of the National Monetisation Pipeline (NMP), with a focus on sectors such as roads, power, railways, and coal and mines.
Sources told FE that infrastructure development on vacant public land would be another major area of asset recycling in this phase.
Building on the success of the NMP 1.0 (FY22-25), the second phase for FY26-30 is being launched to plough back `10 lakh crore of capital in new projects. In NMP 1.0, the government achieved asset monetisation of about Rs 5.65 lakh crore, or 94% of the target of `6 lakh crore. Monetisation proceeds could be in the forms of upfront revenues for leases, revenue sharing from operations, and capital expenditure by private parties.
In FY26, the National Highways Authority of India (NHAI) will be the major contributor to the NMP, followed by power, railways, and coal and mining, an official said. While the numbers are still to be worked out, the official said, the asset monetisation in FY26 could be 5-10% more than around `1.8 lakh crore achieved in FY25.
A consultant will soon be appointed to firm up the five-year and year-wise asset recycling plans in various sectors.
“Roads, railways and power will continue to be major players in asset recycling. Land development with private participation may be another big thing going forward,” the official said.
For NMP 2.0, asset classes and land parcels will come from sectors such as highways, railways, power, petroleum and natural gas, civil aviation, ports, warehousing and storage, urban infrastructure including housing and transport, coal and mines, and telecom.
The NHAI, which monetises road assets via instruments like investment trust (InvlT) and toll-operate-transfer (TOT) contracts, garnered Rs 28,724 crore in FY25. In FY26, it could raise Rs 30,000 crore from monetisation of road assets.
The target for funds to be generated by leasing out operational and other highway networks in the next five years could be set at Rs 3.5 lakh crore, more than double the estimated mop-up in the first phase of NMP.
The railways, which has been lagging in asset monetisation, may pick up pace with station development projects across many cities in the country in FY26.
For the second phase of NMP, Niti Aayog is seeking the services of a firm for formulating a list of infrastructure assets and land parcels for monetisation by duly estimating the likely upfront or periodic revenue that can be realised from such monetisation or the investment by the private sector into such projects.
The consultant would suggest innovative project or financing structures for accelerated development of infrastructure in the country through private sector investment.
It will also identify assets classes, including assets and land parcels, that can be undertaken for development or upgradation or operation and maintenance through private participation. Monetisation potential to be estimated by way of either the private investment that can be attracted for the subject development or the net present value of the premium to be received by the authority, for each class of identified assets.