National Monetisation Pipeline 2.0: 5 Stocks from 5 Sectors to Watch Till FY30

India launched the first National Monetisation Pipeline (NMP 1.0) in 2021 to build better infrastructure without putting extra pressure on government finances.

Instead of selling assets, the government leased out operational assets such as highways, power transmission lines, and pipelines. This helped unlock value from existing projects and use that money to build new infrastructure.

Simply, it was a way of recycling capital. NMP 1.0 achieved around 89% of its target, showing that the model could work.

Now, NMP 2.0 builds on that experience. The government has set a much larger target of Rs 16,720 billion (bn) to be achieved by FY30. The government will own the assets, while private companies operate them for a fixed period in return for payments.

So why should investors care?

First, infrastructure spending has a multiplier effect. For every Rs 1 invested, the economy could see an impact of around Rs 3.25 on GDP.

Second, a portion of the proceeds is retained by public sector companies, helping them strengthen their balance sheets and fund future growth.

Third, the plan creates new investment opportunities through models like Infrastructure Investment Trusts (InvITs).

So NMP 2.0 is a long-term story of infrastructure and value discovery.

Five Key Sectors Driving the Monetisation Plan

#1 Power Sector: Unlocking Value Through Subsidiary Listings

The power sector is a key pillar of NMP 2.0, with a monetisation target of Rs 2,760 bn through FY30.

The government's approach focuses on unlocking value from operational power assets and recycling that capital into renewable energy and grid expansion.

Around Rs 310 bn is expected to be raised through equity dilution or listing of subsidiaries of major power public sector undertakings. These subsidiaries are largely engaged in renewable energy and generation businesses, where separate valuation can improve capital efficiency.

Another major initiative involves the securitisation of operational assets. NHPC and SJVN plan to securitise cash flows from 4,881 MW of hydro capacity, targeting nearly Rs 120 bn.

Power Grid Corporation intends to securitise annuity revenues from 15,295 circuit kilometers of transmission lines, with a target of Rs 335 bn.

In addition, nearly 22,000 circuit kilometers of inter-state transmission lines are proposed to be awarded under the BOOT model, attracting around Rs 2,000 bn in private investment.

A portion of the proceeds will be retained by PSUs, supporting capital expenditure and renewable capacity expansion.

Stocks to watch in the Power Sector Under NMP 2.0

Power Sector Companies

#2 Coal and Mines: Stake Sales and Capital Strengthening

The coal and mining sectors together have a monetisation target of approximately Rs 3,160 bn. The goal is to accelerate commercial mining, improve production efficiency, and attract private participation.

The coal segment accounts for around Rs 2,160 bn of the total target. The government's plan focuses on three areas.

First, the Ministry of Coal plans to auction 94 coal mines to private players.

These auctions generate revenue through upfront payments, royalties, and revenue-sharing arrangements over the life of the contracts.

Second, operational efficiency is expected to improve through private participation.

Around 10 mines will be awarded to Mine Developers and Operators (MDOs), while 6 coal washeries will be auctioned to specialised private operators. This structure allows production enhancement while retaining ownership of underlying assets.

Third, the government has proposed partial equity dilution in subsidiaries of Coal India Limited, with a target of Rs 483.5 bn. The proceeds from such transactions are retained by the public sector entity.

The mining segment has a target of approximately Rs 1,000 bn, primarily through auctions of mineral-bearing blocks under Mining Lease (ML) and Composite License (CL) frameworks.

Stocks to Watch in the Coal and Mining Sector Under NMP 2.0

Coal and Mining Companies

#3 Railways: Station Redevelopment and PSU Divestment

The railways sector has a monetisation target of Rs 2,620 bn. The focus is on redeveloping high-value railway land assets, improving freight infrastructure, and raising capital through partial equity dilution in rail public sector undertakings.

The government plans to redevelop 200 railway stations into integrated commercial hubs. These redeveloped stations are expected to include retail spaces, office complexes, hotels, and other commercial facilities.

For operational stations, the Operate-Maintain-Transfer (OMT) model will be used. Under this structure, private partners will manage and operate the stations for a defined period while sharing revenue with Indian Railways.

The government plans to dilute stakes in seven railway public-sector companies through IPOs or follow-on offerings (a process in which a company already listed on a stock exchange issues additional shares to the public to raise capital).

The target of these equity transactions is approximately Rs 837 bn. Proceeds are expected to be reinvested in railway infrastructure development.

The plan also includes developing over 200 Gati Shakti Multi-Modal Cargo Terminals (GCTs). These terminals are designed to improve freight handling efficiency and attract private investment.

Stocks to Watch in the Railways Sector Under NMP 2.0

Railways Sector Companies

#4 Highways: InvITs and the Toll Monetisation Model

The highways sector represents the largest share of NMP 2.0, with a monetisation target of approximately Rs 4,420 bn, accounting for nearly 26% of the total plan.

The government aims to monetise operational road assets and use the proceeds to finance new expressways and transport corridors.

The strategy relies on the Toll-Operate-Transfer model, where operational highways are leased to private operators in return for upfront concession fees, and on Infrastructure Investment Trusts, which pool operational assets into trust structures.

19,200 km of road stretches have been identified for monetisation, including 12,000 km of operational toll roads, 4,700 km under construction, and 2,500 km of projects reverting to the government.

Proceeds from these transactions accrue to the National Highways Authority of India (NHAI) and the Consolidated Fund of India, supporting future highway development.

Stocks to Watch in the Highways Sector Under NMP 2.0

Highways Sector Companies

#5 Oil & Gas Sector: Unlocking Value from Energy Infrastructure

The oil and gas sector has a monetisation target of approximately Rs 163 bn through FY30.

The plan focuses on unlocking value from pipelines, storage facilities, refinery expansions, and discovered oil and gas fields.

One component involves restructuring city gas distribution assets under a consolidated structure, followed by partial equity dilution to raise capital.

Refinery expansion and storage projects are being developed under the Build-Own-Operate-Transfer (BOOT) model, attracting private investment while retaining long-term ownership within the public sector framework. This segment contributes approximately Rs 53 bn.

In addition, 75 discovered small fields are planned to be auctioned to private operators, targeting around Rs 75 bn through upfront payments, royalties, and revenue sharing.

Leasing of approximately 11,300 km of unused optical fiber alongside pipelines is also expected to generate additional revenue.

Stocks to Watch in the Oil & Gas Sector Under NMP 2.0

Oil & Gas Sector Companies

What Investors Should Watch and What are the Risks?

NMP 2.0 presents long-term infrastructure opportunities, but investors should remain mindful of operational and execution risks, potential project delays, and regulatory or policy changes.

Timely implementation and stable private participation will be critical. As always, balance sheet strength and cash flow visibility remain key factors to monitor.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

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