Govt's FY22- 25 Asset Monetisation Falls Slightly Short at ₹5.8 Lakh Crore

According to news reports, the Central Government has concluded its 4-year National Monetisation Pipeline (NMP) for FY22 to FY25, raising ₹5.8 lakh crore. The initial target was ₹6 lakh crore. The NMP was launched in 2021 to extract value from underutilised public sector assets by involving private participation through structured Public-Private Partnership (PPP) models.

Govt’s Asset Categories and Performance

The plan covered over 20 asset classes, including roads, coal mines, pipelines, airports, telecom infrastructure, and more. Ministries transferred operating rights to private entities for a fixed period, without selling ownership.

The Ministry of Coal contributed ₹2 lakh crore, exceeding its ₹1.38 lakh crore target by 45%. The Ministry of Road Transport and Highways also met a large part of its goal. Together, these ministries offset the underperformance of others, especially Indian Railways.

Railways Miss the Mark

Indian Railways raised ₹28,717 crore, falling short of its ₹1.52 lakh crore target by over 81%. A major portion of its planned monetisation revolved around station redevelopment and privatisation. However, many of these projects faced delays and struggled to attract private interest. Additionally, land monetisation activities carried out by the Rail Land Development Authority (RLDA) were not counted under the NMP as they involved non-core assets.

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Late-Stage Acceleration

According to news reports, most of the momentum came during FY24 and FY25 after ministries adjusted their strategies. In April 2025 alone, ₹8,000 crore was raised. Another ₹10,000 crore was expected to be unlocked pending regulatory approvals.

Next Phase Planned for FY25- 30

In the Union Budget 2025, the government announced the second phase of the monetisation programme. The new target is ₹10 lakh crore for the FY25–30 period. NITI Aayog is currently drafting the framework, with plans to decentralise the process by allowing individual ministries to set and manage their own targets.

Conclusion

The first phase of the National Monetisation Pipeline has ended with ₹5.8 lakh crore raised. Work is now underway for the next 5-year plan, with a revised approach and a larger investment goal.

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