NMP 2.0: Government aims to achieve Rs 16.7 trillion capital restructuring through public sectors

In a significant boost to generate revenue and financial growth for the core structure of the country’s well-being, the government is targeting for asset monetization of Rs 2.76 trillion from power sector projects by FY 30 as per the National Monetization Pipeline (NMP) 2.0 report released by Niti Aayog.

New Delhi, Feb 24, 2026: In a significant boost to generate revenue and financial growth for the core structure of the country’s well-being, the government is targeting for asset monetization of Rs 2.76 trillion from power sector projects by FY 30 as per the National Monetization Pipeline (NMP) 2.0 report released by Niti Aayog. However, the target for FY 26 has been standing at Rs 49,900 crore. The assets classification for the power sector in NMP 2.0 will include eight operational hydro assets of PSUs like NHPC Ltd, SJVN Ltd, transmission assets of Power Grid, inter-state transmission lines (ISTL) along with the equity dilution of the step-down subsidiaries of PSUs.

The mode of monetization which would be preferred for hydro assets is the securitization of significant cash flow by the PSU companies. While Power Grid is planning to monetize its transmission assets via securitization of its respective annuity revenues. Inter-state Transmission Lines projects are awarded on a BOOT mode through tariff-based competitive bidding and the investments under these partnership projects shall be the monetization value under NMP 2.0. This will also include the partial disinvestment in the subsidiaries of power PSUs.

This asset monetization program is expected to rise India’s GDP by approximately by Rs 40 lakh crore over the next five to ten years as per the report by Niti Aayog. According to the report, the government proceed from asset monetization for the period of FY 26-30 will generate around Rs 4.6 trillion of revenue. As per assumption, the 70% of the amount will be spent on public funded projects including infrastructure development. The remaining will be invested as per officials in Public-Private Partnership (PPP) projects with a leverage ratio of around 1:2 under suitable financial surrounding. As of report the Rs 1.6 trillion in PSU proceedings will generate around Rs 4.9 trillion in the sector public capital expenditure program.

With this, it is assumed that around 6.2 lakh crore of Central government and PSU proceeds would probably result in the increased investment of around Rs 12.2 trillion in infrastructure projects. The Niti Aayog has assumed to achieve approximately Rs 16.7 trillion through this NMP 2.0 monetization program of assets across 12 sectors in the five years period of duration, while including private sector investment of Rs 5.8 trillion. The capital expenditure would rise around 3.25 times of the current investment to signify boost in economic infrastructure of the public sectors.