NEW DELHI: With the current National Monetisation Pipeline (NMP) programme ending in March this year, the Centre may announce its next phase with annual asset monetisation goals of Rs 2 lakh crore for the next 4-5 years, to mobilise capital for investments and re-investments.
The government had set an ambitious Rs 6 trillion asset recycling target under the first NMP over the four years through FY25, by monetisation of operational assets in sectors like roads, mining, power, petroleum and airports.
The NMP-1 achievement has been Rs 3.85 lakh crore or 90% of the Rs 4.3 trillion targeted in the first three years in upfront revenues, as well as revenue sharing from operations and capex from private parties. For FY25, the terminal year for the first NMP, the target is Rs 1.67 lakh crore, which is likely to be exceeded, sources said.
Given the substantial build-up of assets in the public sector and the success in the four years, the government will likely aim for around Rs 2 lakh crore asset recycling in the next phase of NMP to generate resources for reinvestment by the public sector as well as fresh investment by the private sector, sources said. An announcement in this regard may be made in the upcoming budget.
The monetization in the second phase of NMP will likely be led by highways, mining, power and petroleum while metro rail networks in major cities could give the impetus to asset recycling for the first time. In the power sector, monetization of green assets is being taken up through the listing of subsidiaries of CPSEs in the sector. The first off the block was NTPC Green Energy Ltd (NGEL)’s Rs 10,000 crore IPO by NTPC in November 2024. State-run NLC and SJVN will likely list their green subsidiaries next year, boosting the monetisation of green assets.
Similarly, metro rail networks developed through public investment have created a major pipeline of brownfield assets. Besides operations and management of the Metro networks, built-up space in Metro stations will be up for grabs for leasing under PPP. Metro networks which could be taken up for monetization include Delhi, Bangalore, Chennai, Jaipur and Kanpur, among others.
Railways, which was a dampener in the first NMP 1, will finally see some action in the next five years by way of commercial leasing of space in over 100 stations including Mumbai, Delhi, Chennai and Secunderabad among others. After stations are redeveloped, commercial space will be leased out in and around stations.
While the power sector would likely focus on securitizing existing revenue streams, the petroleum sector would boost monetization through private investment in exploration-production activities.
Source: The Financial Express