News has broken out regarding the task force spearheaded by Atanu Chakraborty, economic affairs secretary, which has recently submitted its final report on the National Infrastructure Pipeline (NIP) to the Finance Minister.
Revised Investment Need
According to the task force’s evaluation, a substantial investment of ₹111 lakh crore is predicted to be necessary for the next five years (2020-2025). This substantial funding is required to initiate infrastructure projects and stimulate economic growth. The final report shows an increased NIP from the initial Rs 100 lakh crore owing to additional data provided by central ministries/state governments after the publication of the summary NIP report.
Bulk Share Allocation
When it comes to allocation, the majority portions of these projects, approximately 70%, is estimated to gravitate towards energy, roads, railways and urban projects.
Proposed Measures
The task force has proposed several measures, including an aggressive push towards asset sales and monetisation of infrastructure assets. They also suggest setting up development finance institutions, strengthening municipal bond markets, and streamlining the process.
Streamlined Processes
Three committees have been recommended by the task force for streamlining processes — one panel to monitor NIP progress and eliminate delays, a steering committee in each infrastructure ministry to follow up implementation, and a committee in the Department of Economic Affairs to secure financial resources for the NIP.
Establishment of Task Force
The task force was established as a result of the Prime Minister’s Independence Day speech in 2019, where he pledged to roll out an infrastructure push worth ₹100 trillion over five years to boost India towards becoming a 5 trillion economy.</p> <h4>National Infrastructure Pipeline</h4> <p>The National Infrastructure Pipeline (NIP) was announced in a summary report by the finance minister on 31st December 2019. The NIP projects to enable a forward outlook on infrastructure developments that will create jobs, improve ease of living, and provide equitable access to infrastructure for all citizens, thus fostering more inclusive growth. </p> <h4>Project Status</h4> <p>Of the total expected capital expenditure of Rs 111 lakh crore, projects worth Rs 44 lakh crore (40 % of NIP) are currently under implementation, projects worth Rs 33 lakh crore (30 % of NIP) are at the conceptual stage, and projects worth Rs 22 lakh crore (20 % of NIP) are under development.</p> <h4>Details about NIP</h4> <p>NIP encompasses both economic and social infrastructure projects, including both greenfield and brownfield projects. It aims to increase annual infrastructure investment to achieve a Gross Domestic Product (GDP) of5 trillion by 2024-25.
Division of Responsibilities
The Centre and states are projected to share approximately equal responsibility in implementing the NIP, while the private sector’s contributory expectation sits around 21%.
Last Modified: February 7, 2024