Task Force on National Infrastructure Pipeline submits final report to Finance Minister
The final report projects total infrastructure investment of Rs 111 lakh crore during the financial period 2020-25.
The task force on National Infrastructure Pipeline (NIP) submitted its final report for the fiscal year 2019-25 to Union Finance Minister Nirmala Sitharaman on April 29, 2020.
The summary of the report, prepared by the Task Force on National Infrastructure Pipeline for 2019-2025, was released by the Finance Minister on December 31, 2019.
This report carries the recommendations of the task force for the implementation of general and sectoral reforms relating to infrastructure by the centre and states.
According to the Finance Ministry, the National Infrastructure Pipeline (NIP) will help provide quality and adequate infrastructure across the nation and boost economic growth.
Final Report of NIP Task Force: Key Highlights
• The final report projects a total infrastructure investment worth Rs 111 lakh crore during the financial period 2020-25. The final report comprises three volumes.
• As per the report, out of the total projected capital expenditure worth Rs. 111 lakh crore:
- Projects worth Rs 44 lakh crore (40% of NIP) are currently under implementation
- Projects worth Rs 33 lakh crore (30%) are at a conceptual stage
- Projects worth Rs 22 lakh crore (20%) are under development
- Information regarding the project stage is unavailable for projects worth Rs 11 lakh crore (10%).
• Sectors including energy (24%), roads (18%), urban (17%) and railways (12%) amount to around 71% of the projected infrastructure investments in India.
• The centre (39 percent) and state (40 percent) are expected to have an almost equal share in implementing the projects, while the private sector has 21 percent share.
• The final report highlights and identifies recent trends in infrastructure in India along with global trends. It also reports the progress, deficit and challenges faced by the sector.
• The final report also highlights reforms that are required to scale up infrastructure investments in various sectors throughout the country.
• It also suggested the ways and means of financing the National Infrastructure Pipeline through deepening Corporate Bond markets, including Municipal Bonds and setting up of development financial Institutions for the infrastructure sector, accelerating monetisation of Infrastructure Assets and land monetisation.
• The task force has recommended setting up of the following three committees:
1. Committee to monitor NIP progress and eliminate delays
2. Steering Committee at each Infrastructure ministry level to follow up on the implementation process
3. Steering Committee in DEA for raising financial resources for the NIP.
Why are these committees required?
While the Ministry and the project agency will undertake basic monitoring, there is a need for a higher level of monitoring for the reforms to be undertaken and issues of stalled projects.
National Infrastructure Pipeline
What is National Infrastructure Pipeline?
National Infrastructure Pipeline (NIP) is a first-of-its-kind government exercise to pave the way for world-class infrastructure across the nation and improve the quality of life of the people.
The initiative aims to improve infrastructure project preparation and attract new investments both foreign and domestic. The project will play a significant role in fulfilling India’s goal of becoming a $5 trillion economy by FY 2025.
The NIP report has been made based on the information collected from various stakeholders including the concerned ministries, departments, state governments and private sector.
The NIP project database would be made available on India Investment Grid (IIG) soon to provide visibility to the NIP and help in its financing. All the prospective investors will be able to access updated project-level information on the grid.
The central ministries and state departments would also be adding new projects and update their respective project details at pre-defined time intervals to ensure the updated data is available to the prospective investors.
Union Finance Minister Nirmala Sitharaman had announced during her 2019-20 budget speech that Rs. 100 lakh crore will be invested in the infrastructure sector over the next five years. Prime Minister Narendra Modi had also reiterated during his Independence Day speech in 2019 that the government has earmarked Rs 100 lakh crore for the development of modern infrastructure across the country, which will pave way for new job opportunities and improve the standard of living.