CHENNAI: Indian Railways has drawn up an ambitious plan to raise Rs 2.5 trillion through asset monetisation over the next five years as part of the government’s National Monetisation Pipeline (NMP) 2.0. The new target marks a significantly sharper push compared to the previous cycle, when the railways’ monetisation goal was revised down to around Rs 1 trillion from the earlier Rs 1.52 trillion.
Under the updated framework, the railways will rely heavily on public-private partnerships to unlock value across multiple asset classes. The focus areas include Gati Shakti cargo terminals, station redevelopment, and commercial development of high-value land parcels in cities such as Kolkata and Delhi. Officials say this multi-asset approach is meant to ensure steady revenue streams while attracting long-term private participation.
However, the scale of the new target comes at a time when the first phase of the monetisation programme has struggled to meet expectations. The railways are expected to fall short of their earlier target by more than Rs 1.23 trillion, mainly due to muted private-sector interest, regulatory bottlenecks, and the absence of an independent sector regulator. The government has now allowed individual ministries to set their own monetisation targets, hoping that decentralisation will lead to more realistic planning and better execution.
Sector analysts say the success of the new pipeline will depend largely on the structure of PPP contracts and how risks are allocated between the government and private players. They also point out that in NMP 2.0, the government is counting heavily on roads, railways, and coal to generate the bulk of the projected monetisation receipts.
Despite past challenges, the railways have reported some recent traction. Land monetisation proceeds crossed Rs 3,129 crore in FY25, supported by a multi-year growth trend, though larger projects such as the monetisation of dedicated freight corridors are still under discussion.
With its new five-year target, Indian Railways is signaling a decisive shift toward scaling up private investment across its infrastructure. But translating this ambition into results will require overcoming long-standing barriers and designing contracts attractive enough to draw sustained private interest.