Asset Monetisation Plan 2.0: An Overview of India's Infrastructure Strategy

What is the Asset Monetisation Plan 2.0?

The Asset Monetisation Plan 2.0 (2025-2030) is an initiative by the Indian government to lease out public infrastructure assets to private players to generate revenue. The funds raised will be reinvested into new infrastructure projects.

What are the key sectors targeted under this plan?

The plan will focus on monetising assets in various sectors such as power transmission, mining, and petroleum. High-value assets, including transmission lines owned by state agencies, will be opened for private investment.

How much monetisation target has been set for 2025-26?

The government aims to increase its annual monetisation target to ₹2-2.5 lakh crore in 2025-26.

What was announced in Budget 2025 regarding asset monetisation?

Finance Minister Nirmala Sitharaman announced a target of ₹10 lakh crore under the second phase (2025-2030), although no annual target was specified.

How successful was the first Asset Monetisation Plan (2021-2025)?

The first plan targeted ₹6 lakh crore worth of monetisation. By the fiscal year 2023-24, the government achieved ₹1.56 lakh crore against a goal of ₹1.8 lakh crore. The plan is expected to be completed in March 2025, with 90% of the targets anticipated to be met.

Which assets contributed the most in 2023-24?

The road transport and coal sectors led the monetisation efforts, contributing ₹97,000 crore in 2023-24.

What role does NHAI play in asset monetisation?

The National Highways Authority of India (NHAI) has identified 33 highway assets for monetisation in 2024-25.

What is the revised target for 2024-25?

The NITI Aayog increased the asset monetisation target by ₹23,000 crore, raising it to ₹1.9 lakh crore for 2024-25.

Why is monetisation of transmission lines significant?

Transmission lines offer a steady revenue stream, making them attractive to investors who prefer lower-risk opportunities. However, the final decision regarding these assets rests with state governments.

How is the second round (2025-2030) being planned?

NITI Aayog is collaborating with relevant ministries to set sector-specific targets, ensuring accountability. State governments will also have the opportunity to participate in the planning process.

What is the broader economic impact of asset monetisation?

According to NITI Aayog, monetisation boosts infrastructure investment, enhances employment, strengthens market access, and improves living standards across the country.

How does asset monetisation contribute to economic growth?

By unlocking capital tied up in existing assets, funds are reinvested into new infrastructure, creating a cycle of economic development and improving asset efficiency.