Centre’s ₹10 trillion asset monetization 2.0 likely to focus on power transmission, mining, and petroleum sectors

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Subscribe to enjoy similar stories. 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. Also read | Centre to fast-track fund deployment in FY26 to boost growth “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. 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.