The Government of India recently published a report detailing the National Infrastructure Pipeline (NIP) for 2019-2025. Initiated by the Prime Minister in his 2019 Independence Day address, this extensive development plan involves an investment of ₹100 lakh crore directed towards infrastructure in the next five years. The primary objective of these initiatives is to enhance the ease of living for all citizens through improved access to clean water, affordable energy, comprehensive healthcare, and world-class transportation and educational facilities.
Formation and Purpose of the Task Force
The creation of a task force to design the NIP for each financial year from 2019-20 to 2024-25 was a key step taken by the government. The aim of the NIP is to provide a forward-looking perspective on infrastructure projects, create employment opportunities, improve living standards, and ensure equitable access to infrastructure for all citizens. This approach is expected to foster inclusive growth.
The National Infrastructure Pipeline Explained
The NIP includes both economic and social infrastructure projects. From 2020 to 2025, major sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) are projected to account for approximately 70% of the total capital expenditure on infrastructure in India. The strategy elaborated in the NIP involves an investment exceeding ₹102 lakh crore on infrastructure projects by 2024-25. The sharing of this capital expenditure is expected to follow a 39:39:22 ratio among the Centre, States, and the private sector respectively.
Projected Capital Expenditure by Sector
| Sector | Percentage of Total Capital Expenditure |
|---|---|
| Energy | 24% |
| Roads | 19% |
| Urban | 16% |
| Railways | 13% |
Funding Model for Infrastructure Development
A distinct characteristic of the NIP’s financial framework involves the division of capital expenditure amongst the Centre, States, and the private sector in a 39:39:22 formula. This shared responsibility is expected to facilitate the successful implementation of these ambitious infrastructure projects, thereby transforming the country’s socio-economic landscape in due course. By leveraging resources from different sectors, the NIP aims to ensure the efficient allocation and utilisation of funds, enhancing overall project viability and sustainability.
