Secy group on asset monetisation to meet on Thursday; to discuss NMP 2.0

It will also review progress of first phase of project

Ahead of a formal rollout of the second edition of the National Monetisation Pipeline (NMP 2.0), valued at Rs 10 trillion, the Core Group of Secretaries on Asset Monetisation (CGAM), chaired by Cabinet secretary TV Somanathan, will meet on Thursday to discuss the final progress of the first phase of the NMP.

 

This comes as the Centre fine-tunes plans for the second one.

 

The CGAM, comprising relevant infra secretaries, undertakes periodic review to monitor the progress of transactions. It resolves structural issues, if any, for undertaking the projects in all the sectors covered under the NMP.

 

“Building on the success of the first Asset Monetisation Plan announced in 2021, the second plan for 2025-30 will be launched to plough back capital of Rs 10 trillion in new projects. Regulatory and fiscal measures will be fine tuned to support the plan,” finance minister Nirmala Sitharaman said in her Budget speech on February 1.

 

 

Business Standard had reported in October that the government had to tweak its monetisation targets in the final year of the first pipeline – FY25 – to Rs 1.9 trillion to get close to its original four-year target of Rs 6 trillion.

 

So far, highways, coal, and mines have been the brightest performers for the government in monetisation, achieving nearly Rs 2.7 trillion by the end of FY24.

 

Railways has been among the worst performers in terms of achieving the target.

 

During its inception, the national transporter was supposed to contribute a fourth of the total monetisation proceeds with Rs 1.52 trillion in monetisation from trains, stations, and terminals.

 

At the end of FY24, the Ministry of Railways had monetised assets worth Rs 20,417 crore over the past three financial years.

 

It achieved 30 per cent of its revised target – much lower than its initial target.

 

The railways was given a target of Rs 17,000 crore during the current financial year.

 

Queries sent to NITI Aayog remained unanswered till the time of going to press.