The NIP report suggests deepening bond markets, setting up of development financial institutions and land monetisation
It has also suggested setting up for three committees for monitoring, implementation and funding of infrastructure projects
New Delhi: A government task force has projected a total investment of Rs 111 lakh crore for FY20-25 under the NIP (National Infrastructure Pipeline) initiative to provide world-class infrastructure across the country and create jobs. The final report of the task force on NIP was handed over to Union Finance Minister Nirmala Sitharaman on Wednesday.
The NIP report suggests deepening bond markets, setting up of development financial institutions and land monetisation to meet the funding needs, the Ministry of Finance said in a statement.
What does the NIP task force recommend in the final report?
Headed by Economic Affairs Secretary Atanu Chakraborty, the final report by the NIP task force has suggested setting up for three committees for monitoring, implementation and funding of infrastructure projects.
While basic monitoring will vest with the ministry and project agency, there report highlighted the need for a higher level of monitoring on reforms to be undertaken and to deal with issues of stalled projects.
Status of implementation
The Final Report of NIP Task Force is projecting total infrastructure investment of Rs 111 lakh crore during the period FY 2020-25 in light of additional/amended data provided by Central Ministries/State Governments since the release of summary NIP Report in December 2019. Out of the total expected capital expenditure of Rs 111 lakh crore, projects worth Rs 44 lakh crore (40 percent of NIP) are under implementation, projects worth Rs 33 lakh crore (30 percent) are at conceptual stage and projects worth Rs 22 lakh crore (20 percent) are under development. Information regarding project stage are unavailable for projects worth Rs 11 lakh crore (10 percent). Sectors such as energy (24 percent), roads (18 percent), urban (17 percent) and railways (12 percent) amount to around 71 percent of the projected infrastructure investments in India. The Centre (39 percent) and states (40 percent) are expected to have almost equal share in implementing the NIP in India, followed by the private sector (21 percent).