During his address outlining the 2019–2020 budget, the Finance Minister said that over the next five years, 100 billion rupees would be spent on infrastructure projects.
What is it?
NIP is a groundbreaking initiative to improve the nation’s infrastructure and everyone’s standard of living.
As it will improve project planning, draw investments (both domestic and international) into infrastructure, and attract new business ventures, it will be crucial for reaching the objective of creating a $5 trillion economy by FY 2025.
involves both social and economic infrastructure initiatives.
The report of the Task Force:
In May 2020, Atanu Chakraborty’s National Infrastructure Pipeline (NIP) task committee presented the Finance Minister with its final report.
Important conclusions and suggestions made:
To finance infrastructure projects and foster economic growth, 111 lakh crore in investment would be needed over the following five years (2020-2025).
Estimates show that around 70% of initiatives are focused on energy and transportation (roads, rails, and cities).
The centre (39%) and state (40%) will each contribute about equally to the projects’ implementation, with the private sector chipping in 21%.
Vigorous effort to liquidate assets.
Monetization of assets for infrastructure.
The creation of institutions for financing development.
The growth of the municipal bond market.
The task force recommended creating the following three committees:
To prevent delays, a committee will monitor NIP development.
The DEA’s steering committee is in charge of securing funds for the NIP. Each level of the Infrastructure ministry has a steering committee to keep an eye on the implementation process.