Mains-GS-3-Economic Development, Prelims- Economy
1. The Task Force on National Infrastructure Pipeline (NIP) submitted its Final Report on NIP for FY 2019-25 to the Union Minister for Finance.
2. Union Finance Minister in the Budget speech 2019-20 announced that Rs. 100 lakh crore would be invested in infrastructure over the next five years.
About NIP
1. NIP is a first-of-its-kind, whole-of-government exercise to provide world-class infrastructure across the country and improve the quality of life for all citizens.
2. It aims to improve project preparation, attract investments (both domestic and foreign) into infrastructure and will be crucial for the target of becoming a $5 trillion economy by FY 2025.
3. The NIP has been made on a best effort basis by aggregating the information provided by various stakeholders including line ministries, departments, state governments and private sector across infrastructure sub-sectors identified in the Harmonised Master List of Infrastructure.
4. A bottom-up approach was adopted with all projects (Greenfield or Brownfield, Under Implementation or under conceptualisation) costing greater than Rs 100 crore per project were captured.
Final Report
1. The report projects total infrastructure investment of Rs 111 lakh crore during the period FY 2020-25 based on new additional/amended data provided by Central Ministries/State Governments.
2. Sectors such as energy (24%), roads (18%), urban (17%) and railways (12%) amount to around 71% of the projected infrastructure investments in India. The Centre (39%) and States (40%) are expected to have an almost equal share in implementing the NIP, followed by the private sector (21%).
3. It identifies and highlights recent infrastructure trends in India as well as global in all sectors of infrastructure.
4. It also captures sector progress, deficits and challenges. It identifies and highlights a set of reforms to scale up and propel infrastructure investments in various sectors throughout the country.
5. It has suggested ways and means of financing the NIP through deepening Corporate Bond markets, including those of Municipal Bonds, setting up Development Financial Institutions for the infrastructure sector, accelerating Monetisation of Infrastructure Assets, Land monetisation, etc.
6. The Task Force has recommended setting up of three Committees:
a. A Committee to monitor NIP progress and eliminate delays,
b. A Steering Committee in each Infrastructure ministry level for following up implementation and
c. A Steering Committee in DEA for raising financial resources for the NIP.
Database
1. The NIP project database would be hosted on India Investment Grid (IIG) to provide visibility to the NIP and help in its financing with prospective domestic and foreign investors able to access updated project level information.
2. Each line Ministry/State would further add new projects and update their respective project details at pre-defined time intervals for making updated data available to prospective investors.
Source: PIB