NATIONAL INFRASTRUCTURE PIPELINE:
Background:
- 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.
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