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:
- 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 share in 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.
The task force has recommended setting up of the following three committees:
- Committee to monitor NIP progress and eliminate delays
- Steering Committee at each Infrastructure ministry level to follow up on the implementation process
- 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.