In the Union Budget 2025, the Government of India announced the second Asset Monetization Plan for the period 2025–30. What is the primary objective of this plan?
(a). To sell government-owned assets to private companies and exit from the operations and ownership entirely.
(b). To raise non-tax revenue by leasing underutilized public assets and reinvest the proceeds into new infrastructure projects.
(c). To divest minority stakes in public sector undertakings (PSUs) to increase market participation.
(d). To provide subsidies to infrastructure companies engaged in public-private partnerships.

Question

In the Union Budget 2025, the Government of India announced the second Asset Monetization Plan for the period 2025&ndash;30. What is the primary objective of this plan?
(a). To sell government-owned assets to private companies and exit from the operations and ownership entirely.
(b). To raise non-tax revenue by leasing underutilized public assets and reinvest the proceeds into new infrastructure projects.
(c). To divest minority stakes in public sector undertakings (PSUs) to increase market participation.
(d). To provide subsidies to infrastructure companies engaged in public-private partnerships.

ONLiNE UPSC · Accepted Answer

Option (b) is correct: This core objective of the Asset Monetization Plan 2025&ndash;30 is to raise ₹10 lakh crore over five years by leasing or monetizing brownfield (already developed) public assets across sectors such as roads, railways, power, telecom, and aviation.
The revenue generated will not be treated as disinvestment, but rather non-tax capital receipts, which will be reinvested into new infrastructure creation.
Why the other options are incorrect:
Option (a) is not correct: The Asset Monetization Plan does not involve the outright sale of government assets. Instead, it focuses on leasing or concessioning assets (e.g., roads, warehouses, power transmission lines) to private players for a fixed period while the government retains ownership. This option falsely equates asset monetization with privatization.

Option (c) is not correct: Divestment of equity in PSUs is part of the disinvestment strategy, not asset monetization. Asset monetization deals with leasing physical infrastructure assets, not selling government shareholdings.

Option (d) is not correct: While public-private partnerships (PPPs) may be involved in the implementation, providing subsidies to these companies is not the plan&rsquo;s objective. The plan is about unlocking value from existing assets, not about financial support to private firms.

Union Budget and Asset Monetization

Objectives of Asset Monetization Plan

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M Question 1	⏱ 0
In the Union Budget 2025, the Government of India announced the second Asset Monetization Plan for the period 2025–30. What is the primary objective of this plan? (a). To sell government-owned assets to private companies and exit from the operations and ownership entirely. (b). To raise non-tax revenue by leasing underutilized public assets and reinvest the proceeds into new infrastructure projects. (c). To divest minority stakes in public sector undertakings (PSUs) to increase market participation. (d). To provide subsidies to infrastructure companies engaged in public-private partnerships.