NATIONAL INFRASTRUCTURE PIPELINE

Subject : Economy

Context : US-based realty firm wants to invest $500 bn in India’s National Infrastructure Pipeline.

Concept :

About NIP:

NIP was announced in union budget in 2019-20 for an outlay of Rs 100 lakh Crore for infrastructure projects over the next 5 years.
NIP is a first-of-its-kind initiative to provide world-class infrastructure across the country and improve the quality of life for all citizens.
It will improve project preparation, attract investments (both domestic & foreign) into infrastructure, and will be crucial for attaining the target of becoming a $5 trillion economy by FY 2025.
Covers both economic and social infrastructure projects.

Atanu Chakraborty Report :

The task force headed by Atanu Chakraborty on National Infrastructure Pipeline (NIP), in May 2020, submitted its final report to the Finance Minister. It has recommended the following ,
Investment needed: ₹111 lakh crore over the next five years (2020-2025) to build infrastructure projects and drive economic growth.
Energy, roads, railways and urban projects are estimated to account for the bulk of projects (around 70%).
The centre (39 percent) and state (40 percent) are expected to have an almost equal sharein implementing the projects, while the private sector has 21 percent share.
Aggressive push towards asset sales.
Monetisation of infrastructure assets.
Setting up of development finance institutions.
Strengthening the municipal bond market.