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Report on National Infrastructure Pipeline (NIP)

Topics Covered: Infrastructure.

Report on National Infrastructure Pipeline (NIP)

What to study?

For Prelims: What is NIP? What it includes? Sectors and investments.

For Mains: Significance and challenges in implementation.

Context: The task force headed by Atanu Chakraborty on National Infrastructure Pipeline (NIP) has submitted its final report to the Finance Minister.

Important recommendations and observations made:

  1. Investment needed: ₹111 lakh crore over the next five years (2020-2025) to build infrastructure projects and drive economic growth.
  2. Energy, roads, railways and urban projects are estimated to account for the bulk of projects (around 70%).
  3. 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.
  4. Aggressive push towards asset sales.
  5. Monetisation of infrastructure assets.
  6. Setting up of development finance institutions.
  7. Strengthening the municipal bond market.

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.

What is National Infrastructure Pipeline?

  • It 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.
  • NIP includes economic and social infrastructure projects.
  • It also includes both greenfield and brownfield projects.

 Sources: pib.