Prelims Syllabus : Economics - Infrastructure Mains Syllabus : GS-III Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
Why in News?
- The task force headed by Atanu Chakraborty on National Infrastructure Pipeline (NIP) submitted its final report to the Finance Minister recently.
- The summary report for, National Infrastructure Pipeline (NIP), 2020-25 was released by the finance minister in the month of December,2019.
Highlights of the Report:
- The final report has revised up NIP from earlier Rs 100 lakh crore in light of additional data provided by central ministries/state governments since the release of summary NIP report.
- The taskforce has forecast an investment need of ₹111 lakh crore over the next five years (2020-2025) to build infrastructure projects and drive economic growth.
- Bulk Share: Energy, roads, railways and urban projects are estimated to account for the bulk of projects (around 70%).
Various Measures Suggested by the Report:
- Aggressive Push towards Asset Sales
- Monetisation of Infrastructure Assets
- Setting up of Development Finance Institutions
- Strengthening the Municipal Bond MARKET
Various Committees need to be set up (Recommended in the Report):
- The task force has also recommended set up of three committees:
- Timely Execution: Panel to monitor NIP progress and eliminate delays.
- Follow Up: Steering committee in each infrastructure ministry for following up implementation
- Raising Financial Resources: Committee in the Department of Economic Affairs for raising financial resources for the NIP.
About National Infrastructure Pipeline:
- The task force was set up after the Prime Minister, in his Independence Day speech of 2019, promised to roll out an infrastructure push worth ₹100 trillion over five years to make India a $5 trillion economy.
- NIP will enable a forward outlook on infrastructure projects which will create jobs, improve ease of living, and provide equitable access to infrastructure for all, thereby making growth more inclusive.
- NIP includes economic and Social Infrastructure Projects.
- It also includes both greenfield and Brownfield Projects.
- It will help in stepping-up annual infrastructure investment to achieve the Gross Domestic Product (GDP) of $5 trillion by 2024-25.
- The Centre and states are expected to have almost equal share in implementing NIP, while the private sector contribution is expected to be around 21%.
- Out of the total expected capital expenditure of Rs 111 lakh crore
- Projects worth Rs 44 lakh crore (40 % of NIP) are under implementation.
- Projects worth Rs 33 lakh crore (30 % of NIP) are at conceptual stage.
- Projects worth Rs 22 lakh crore (20 % of NIP) are under development.