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National Monetisation Pipeline (NMP)
What it is
A programme to raise capital by transferring the operating rights of completed public infrastructure to private operators for a defined period, while ownership stays with the government. Roads, transmission lines, airports, ports, railway stations, pipelines and telecom towers are the principal asset classes
Structures include toll-operate-transfer auctions, airport concessions, and InvITs that hold assets and distribute cash flows to unitholders
Impact on industries
- Recycles capital locked in completed assets into new construction without fresh government borrowing, which is the programme's central purpose
- Transfers operating and traffic risk to investors who want stable cash flows rather than construction exposure, and brings private operating discipline to public assets
- Creates a defined pipeline of concession and InvIT opportunities for operators, infrastructure funds and long-term institutional investors
- Proceeds depend on traffic forecasts and interest rates so they fall when funding tightens, and uneven bidder appetite has left delivery behind target