• 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.