From UPSC perspective, the following things are important :
Prelims level : National Infrastructure Pipeline (NIP)
Mains level : Read the attached story
- To augment infrastructure and create jobs in the country, the government task force on National Infrastructure Pipeline (NIP), which in its report projected total investment of Rs 111 lakh crore in infra projects over five years.
- It said that 18 per cent of the targeted investment is expected to be made in the road sector.
It is estimated that India would need to spend $4.5 trillion on infrastructure by 2030 to sustain its growth rate. The endeavour of the National Infrastructure Pipeline (NIP), is to make this happen in an efficient manner.
What is the National Infrastructure Pipeline (NIP)?
- NIP includes economic and social infrastructure projects.
- During the fiscals 2020 to 2025, sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) amount to around 70% of the projected capital expenditure in infrastructure in India.
- It has outlined plans to invest more than ₹102 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.
Key benefits of NIP
- Economic: Well-planned NIP will enable more infra projects, grow businesses, create jobs, improve ease of living, and provide equitable access to infrastructure for all, making growth more inclusive.
- Government: Well-developed infrastructure enhances the level of economic activity, creates additional fiscal space by improving the revenue base of the government, and ensures the quality of expenditure focused in productive areas.
- Developers: Provides a better view of project supply, provides time to be better prepared for project bidding, reduces aggressive bids/ failure in project delivery, ensures enhanced access to sources of finance as a result of increased investor confidence.
- Banks/financial institutions (F1s)/investors: Builds investor confidence as identified projects are likely to be better prepared, exposures less likely to suffer stress given active project monitoring, thereby less likelihood of NPAs.
- The report contains recommendations on general and sector reforms relating to key infrastructure sectors for implementation by the Centre and states.
- These projects will be implemented under the National Infrastructure Pipeline (NIP), a first of its kind exercise, by consulting states, relevant ministries and departments.
- Three committees will be set up to monitor project progress, eliminate delays, and find ways to raise resources, along with a steering committee in each of the infrastructure ministries.
- Sectors such as energy (24%), roads (18%), urban (17%) and railways (12%) amount to around 71% of the projected investments.
- The projects will also be spread across sectors such as irrigation, mobility, education, health, water and the digital sector.