NATIONAL INFRASTRUCTURE PIPELINE

NATIONAL INFRASTRUCTURE PIPELINE

Subject: Economy

Context: Finance and Corporate Affairs Minister Minister Nirmala Sitharaman on Wednesday reviewed the progress of the National Infrastructure Pipeline (NIP) as the government seeks to accelerate infrastructure spending in the economy.

Concept:

• The NIP has been expanded from 6,385 projects at the time of its introduction a year ago, to more than 7,300 projects, and is making progress despite the pandemic, the government said in a statement.

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.