Relevance: GS III (Economy & Infrastructure) | Source: PIB / NITI Aayog

1. The Big News: What is NMP 2.0?

Recently, the Finance Minister launched the second phase of the National Monetisation Pipeline (NMP 2.0).

• The Master Plan: Prepared by the NITI Aayog, it is a massive plan to raise ₹16.72 lakh crore over the next five years (2025–2030).
• The Goal: To generate huge funds for the country’s development without taking extra loans from foreign banks.

2. What is ‘Asset Monetisation’?

Many students confuse this with “privatisation,” but it is entirely different.

• Renting, Not Selling: The government does not sell its property. Instead, it gives already running projects (like old highways, railway stations, or power grids) on a long-term “lease” or rent to private companies.
• Only ‘Brownfield’ Projects: The government only rents out “brownfield” assets. This means projects that are already built and successfully running.
• The Cycle of Growth: A private company pays a large upfront amount to the government to manage that highway and collect tolls. The government then takes this money and uses it to build brand-new roads, schools, or hospitals in poor areas.

3. Key Highlights of the New Plan

• The Top Earner: Out of all the sectors, Highways (Roads) will bring in the maximum money (around 26% of the total target).
• Other Big Sectors: Railways, power plants, and ports will also be rented out to private players for better management.
• New Additions: This time, the government is also including old telecom towers, coal mines, and large godowns (logistics parks).

4. The Main Challenges 

• Complicated Paperwork: Handing over a national railway station or a massive coal mine to a private company involves very complex legal agreements, which can cause long delays.
• Long-Term Fights: These rental agreements last for 20 to 30 years. If the government and the private company have a disagreement 10 years later, resolving it in Indian courts can be very difficult.
• Public Misunderstanding: Common people and opposition parties often misunderstand this as “selling the country’s wealth” to rich businessmen, leading to protests.

UPSC Value Box

Important Term	Simple Meaning for UPSC
Capital Recycling	The smart financial trick of making money from old, existing projects to fund the construction of brand-new ones.
Brownfield Asset	An infrastructure project that is already built and functioning (like an old airport). The private company faces no construction risk here.
Greenfield Asset	Building a completely new project from scratch on empty land.

With reference to the National Monetisation Pipeline (NMP) scheme of the Government of India, consider the following statements:

1. Under the NMP, the government permanently transfers the ownership of public sector assets to private companies.
2. The pipeline focuses exclusively on the monetisation of “brownfield” infrastructure assets.
3. In the NMP 2.0 framework, the Highways sector accounts for the largest share of the targeted monetisation value.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Correct Answer: (b)