National Infrastructure Pipeline, National Monetisation Plan & Gati Shakti vision

#GS3 #Economy

Context

  • India needs to double its infrastructure spending and the private sector must step up and partner with the government, adding that the ministry was actively working on the Gati Shakti vision, says Economic Affairs Secretary 
  • Operationalising the ₹111 lakh crore National Infrastructure Pipeline supplemented by the National Monetisation Plan that aims to raise ₹6 lakh crore is in the process. 
  • The two programs is going to be coupled with the Gati Shakti vision so that there could be ‘seamless movement of goods, services and job opportunities’.

National Infrastructure Pipeline

  • NIP will provide a forward outlook on infrastructure projects which will generate jobs, better ease of living, and provide equitable access to infrastructure for all. This will make growth more inclusive.
  • Economic and social infrastructure projects are included in NIP. 
  • During the fiscals 2020 to 2025, sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) contributed almost 70% of the projected capital expenditure in infrastructure.
  • It aims to invest ₹111 lakh crore on infrastructure projects by 2024-25, with the Centre, States and the private sector to share the capital expenditure in a 39:39:22 formula.

National Monetisation Pipeline

  • The Government has launched a  National Monetization Pipeline, which is a 4-year roadmap of the Central Government’s brownfield infrastructure assets.
  • The pipeline mostly includes railway stations, freight corridors, airports, and renovated national highway segments (yielding toll revenue) amounting to ₹6-lakh crore, or 3% of GDP in 2020-21. 
  • The NMP aims to mobilise resources for financing infrastructure. 
  • The 2021-22 Union Budget mentioned Asset Monetization as a way to finance infrastructure. The government plans to use asset monetization not just for funding but also as a strategy for the enhancement and maintenance of infrastructure.
  • It aims to be a medium-term roadmap for assessing potential monetization-ready projects, across various infrastructure sectors.
  • Monetization through disinvestment and monetization of non-core assets is not included in the NMP.
  • Presently assets of central government line ministries and CPSEs in infrastructure sectors are only included.
  • Coordination and collation of asset pipelines from states are ongoing. It is expected to be included in due course.
  • Objectives 
    • Access to quality and affordable infrastructure for citizens.
    • Luring private sector investment for better infrastructure creation.
    • Creating employment opportunities. 
    • Fuel economic growth 
    • Integrate the rural and semi-urban areas for better public welfare.

Gati Shakti Plan

  • It is a national infrastructure plan for developing infrastructure and an integrated pathway to the Indian economy.
  • The funding will amount upto 100 lakh.  
  • It will be in sync with the National Infrastructure Pipeline (NIP).
  • The Gati Shakti plan will include multimodal connectivity of various economic hubs with roads, ports and airports.  It will provide manufacturers faster access to domestic and international markets. 
  • It will enable better utilisation of economic hubs and of the investments in the sector being done by the government and private players.
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