Topics Covered: Infrastructure.
National Infrastructure Pipeline (NIP):
Context:
FM reviews NIP as part of infra spending push.
- 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.
About NIP:
- In the budget speech of 2019-2020, Finance Minister announced 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.
Important recommendations and observations made by Atanu Chakraborty taskforce:
- 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.
InstaLinks:
Prelims Link:
- What is NIP? When was it launched?
- Projects covered under NIP.
- Key recommendations made by task force headed by Atanu Chakraborty on NIP.
- Three committees proposed to be set up as per the recommendations made by Task Force.
- What is India Investment Grid?
Mains Link:
Discuss the significance and features of NIP.
Sources: the Hindu.
