Economy
Centre’s ₹10 trillion asset monetization 2.0 likely to focus on power transmission, mining, and petroleum sectors
Summary
- In 2025-26, the Centre aims to increase its annual asset monetization aim, targeting ₹2 trillion to ₹2.5 trillion.
The Union government’s ambitious Asset Monetization Plan 2.0 (2025-2030) will likely focus on power transmission, mining, and petroleum, with high-value assets like transmission lines opened for private participation while aiming to increase its annual monetization target to ₹2-2.5 trillion in 2025-26, two people familiar with the matter told Mint.
In the Budget 2025, finance minister Nirmala Sitharaman unveiled the second Asset Monetization Plan (2025-30), targeting ₹10 trillion by monetizing government-owned assets and reinvesting the proceeds into new infrastructure projects.
However, an annual target was not announced in the budget.
“One asset category available for monetization is transmission lines with state transmission agencies, which is a strong option. However, the decision ultimately rests with each state," said the first person mentioned above, who spoke on condition of anonymity.
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“The idea is to unlock capital tied up in existing state assets by monetizing them, as the construction risk is already over, and they generate a steady income stream. Investors who prefer lower-risk opportunities can acquire these assets, freeing up capital that can be reinvested in new infrastructure projects—that’s the essence of capital recycling," the person added.
Round one
The first Asset Monetization Plan, launched in 2021, identified ₹6 trillion worth of assets for monetization between 2021-25.
The government set a target of ₹2.5 trillion for the first two years (2021-22 and 2022-23) and achieved ₹2.3 trillion.
In 2023-24, against a goal of ₹1.8 trillion, it achieved ₹1.56 trillion.
In the first round of asset monetization from 2021 to 2025, government assets in the road, transport, and highway sectors and coal-sector assets were highly successful.
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The road transport and coal ministries led asset monetization in 2023-24, contributing ₹97,000 crore.
To accelerate efforts, the National Highways Authority of India (NHAI) has identified 33 assets for monetization in 2024-25, indicating monetization of highway assets is likely to continue.
Increased target
However, for 2024-25, the NITI Aayog increased the asset monetization target by ₹23,000 crore to ₹1.9 trillion.
"The first round of asset monetization (2021-25), with a target of ₹6 trillion, will be completed in March 2025. My understanding is that 90% of the targets will be achieved," said the second person mentioned above, who didn't want to be named.
"For the second round (to be held between 2025 and 2030), NITI Aayog has done the groundwork, collaborating with relevant ministries to set sector-specific targets and identify areas where ministries have taken responsibility. Additionally, there will be opportunities for state governments to participate," the person mentioned above added.
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A spokesperson of the ministry of finance didn't respond to emailed queries.
According to NITI Aayog's National Monetization Pipeline: Volume I – Monetization Guidebook, infrastructure is a key driver of economic growth and performance, with higher investment in quality infrastructure boosting employment, enhancing market access, improving living standards, and empowering vulnerable communities.
"Asset recycling and monetization is the key to value creation in Infrastructure by serving two critical objectives, unlocking value from public investment in infrastructure and tapping private sector efficiencies in operations and management of infrastructure," it added.
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