Launched as part of the Union Budget 2021-22, the National Monetisation Pipeline (NMP) marks a significant step in the Indian government’s strategy to unlock value from public assets. The NMP, developed by NITI Aayog in collaboration with key infrastructure ministries, lists potential core assets of Central Government Ministries and Public Sector Enterprises (PSEs) that could be monetized during the 2021-22 to 2024-25 period. With a target of monetizing assets worth Rs 6 lakh crore over four years, the NMP has made impressive progress, having already monetized assets worth Rs 3.85 lakh crore in just three years.
For the first two years, 2021-22 and 2022-23, the NMP had set a target of Rs 2.5 lakh crore. Against this, the actual achievement was a robust Rs 2.30 lakh crore. The financial year 2023-24 saw an even more ambitious target of Rs 1.8 lakh crore, the highest among the four years. Remarkably, the achievement for 2023-24 stood at Rs 1.56 lakh crore, representing an impressive 159% increase over the first year’s performance.
The success of the NMP can be attributed to the outstanding performance of several key ministries. In 2023-24, the Ministry of Road Transport and Highways and the Ministry of Coal emerged as top performers, together contributing Rs 97,000 crore. The Ministry of Road Transport and Highways achieved Rs 40,314 crore, while the Ministry of Coal contributed Rs 56,794 crore. Other notable performers include the Ministries of Power (Rs 14,690 crore), Mines (Rs 4,090 crore), Petroleum and Natural Gas (Rs 9,587 crore), Urban Affairs (Rs 6,480 crore), and Shipping (Rs 7,627 crore), all of which achieved more than 70% of their targets.
To sustain this momentum and enable investors to plan their investments efficiently, the National Highways Authority of India (NHAI) has already identified and published an indicative list of 33 assets for monetization in 2024-25. Additionally, to enhance the success rate of the bidding process, NHAI has disclosed the macroeconomic assumptions used in calculating the Indicative Enterprise Commercial Value (IECV) on its website.
