The Centre has closed its four-year National Monetisation Pipeline (NMP) programme with total proceeds of Rs 5.8 lakh crore — marginally short of the Rs 6 lakh crore target for FY22 to FY25, according to multiple senior government officials. The initiative was aimed at unlocking value from underutilised public sector assets.
"The first NMP was a roaring success over the last five years, despite a slow start and roadblocks, with the government raising around Rs 5.8 lakh crore – around 98 percent of the target of Rs 6 lakh crore," a senior government official told Moneycontrol.
The landmark asset monetisation drive, launched in 2021, saw robust participation from key ministries such as Coal and Road Transport and Highways, but significantly underperformed in the case of Indian Railways.
Asset monetisation refers to unlocking value from underutilised or idle public sector assets — such as roads, coal mines, airports, pipelines, and telecom infrastructure — without diluting ownership. Operating rights are typically transferred to private players through structured Public Private Partnership (PPP) models for a fixed duration.
Coal, roads drive the momentum
The Ministry of Coal emerged as the top performer, raising Rs 2 lakh crore – exceeding its original target of Rs 1.38 lakh crore by 45 percent. The Ministry of Road Transport and Highways (MoRTH) also contributed significantly, particularly in the latter half of the monetisation period.
“Coal ministry has given a very good buffer. They have exceeded their target by Rs 63,000 crore. Coal is the best performer in asset monetisation among all ministries. Roads have also performed well. It helped meet the shortfall by Railways, which fell short of its asset monetisation target by over 81 percent,” another government official told Moneycontrol.
According to a third senior government official, the momentum picked up substantially during 2023–24 and 2024–25 as ministries were nudged to realign their strategies based on early successes. “Following a rejig in strategy in the last two financial years, the target under NMP became achievable. However, some delays in regulatory approvals led to a small shortfall,” the official said.
In April 2025 alone, ministries raised another Rs 8,000 crore, while regulatory nods were awaited to unlock an additional Rs 10,000 crore by May 2025, they added.
Railways falls far behind
Despite the overall progress, Indian Railways has struggled to meet its ambitious monetisation goals. It raised just Rs 28,717 crore over four years against its target of Rs 1.52 lakh crore.
“Railways did not meet their targets, they are not doing much asset monetisation,” the government official said. “Railways have viable core assets like lines, wagons, and stations which need to be monetised through PPPs, but the structures haven’t been made attractive to investors,” the official said.
Land monetisation efforts by the Rail Land Development Authority (RLDA) are not counted towards NMP, as these are classified as non-core assets.
"Station redevelopment and privatisation formed a major chunk of Indian Railways’ monetisation plans between 2021-25, but these plans were made without the in-depth consultation and recommendation of the railways and have failed to attract private investors," a senior railway ministry official had told Moneycontrol earlier.
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The first NMP, which began in 2021, aimed to raise Rs 6 lakh crore by FY25 through such initiatives, setting benchmarks for ministries across 20 asset classes.
Next phase: Rs 10 lakh crore target for FY25–30
Looking ahead, the government is preparing the second leg of its asset monetisation plan. In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced a new NMP targeting Rs 10 lakh crore in investments over the next five years (FY25–30). The blueprint for this is being drafted by Niti Aayog and ministry-wise targets are expected to be announced soon.
ALSO READ: Set your own targets, govt tells ministries after railway’s asset monetisation fails
NITI Aayog is revamping its approach for the second NMP (2025–30) with a Rs 10 lakh crore target, directing key ministries like Railways, Roads, and Housing to set their own asset monetisation targets. This shift to a decentralised model follows concerns over the earlier top-down approach and aims to improve ownership, realism, and accountability in achieving targets.
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