Union Finance Minister Nirmala Sitharaman unveiled Rs. 102 lakh crores of infrastructure projects pipeline in a press conference on 31st December 2019. The projects will be implemented by 2024-25. These projects are spread over 21 ministries and 18 states and union territory’s of Inida. Further, she mentioned that in the coming weeks it is expected that projects worth Rs. 3 lakh crore would be added by few other states, making a total of Rs. 105 lakh crore of infrastructure projects.
Work Behind National Infrastructure Pipeline
On 72nd Independence Day of India, PM Narendra Modi had highlighted that Rs. 100 lakh Cr would be invested in infrastructure projects in the next five years. Subsequently, a special task force chaired by the Secretary, Department of Economic Affairs, Ministry of Finance was assigned to outline the pipeline. In the time span of four months, 70 meetings of entities engaged in various sectors were held and for the first time in the country, National Infrastructure Pipeline (NIP) was constituted. A report on NIP outlining Rs. 102 lakh crore projects by 2024-25 was released during the same conference.
Capital Expenditure Share in NIP
At present in the NIP, capital expenditure share stands as 39 % by central government, 39 % by state government and 22 % by private sector. It was mentioned in the conference that it is expected that the share of private sector could change to 30% by 2025.
Projects Status under NIP
Out of the total projects of Rs. 102 lakh Cr projects worth Rs. 42.7 lakh Cr are under the implementing stage, projects worth Rs. 32.7 lakh Cr are in the conceptualizations state and another Rs. 19.1 lakh Cr of projects are under development state.
Sector-wise break up of the NIP
The projected capital expenditure in major sections of infrastructure is as following: Road projects Rs. 19.64 lakh Cr (19 %), Urban and Housing projects Rs. 16.29 lakh Cr (16 %), Railway projects Rs. 13.69 lakh Cr (13%), Conventional power Rs. 11.76 lakh Cr, Renewable energy Rs. 9.30 lakh Cr, Port projects Rs. 1.01 lakh crore, Airport projects Rs. 1.43 lakh crore, Telecom projects Rs. 3.2 lakh crore and more.
Further steps to support NIP
A global investor meet will to be conducted annually and its first edition shall be in the second half of 2022. Also an annual supplementary report shall be published to reflect the updated list of projects and status.
The aim for NIP is to support and push for greater ease of living and ease of doing business. Also to boost India’s economic growth and achieve Govt’s ambitious $5 trillion economy goal for 2024-25.