National Infrastructure Pipeline

The government launched Rs 102 lakh crore of infrastructure projects, under National Infrastructure Pipeline (NIP) on 31^st December, 2019 that will be implemented in the next five years as part of the government’s spending push in the infrastructure sector.

• Objective: It is estimated that India would need to spend $4.5 trillion on infrastructure by 2030 to sustain its growth rate. The objective of the NIP is to achieve this goal in an efficient manner.

Key Features

• The NIP would include green field and brown field projects costing above Rs 100 crore each.
• Each Ministry/ Department would be responsible for monitoring of projects so as to ensure their timely and within-cost implementation.
• The funding of the NIP will be jointly made by the Centre, states and the private sector in the following ratio- 39 % each by the centre and states and 22% by the private sector).
• The focus area include roads (19%) and railways (13%), urban (16%) and rural (8%) infrastructure, and irrigation (8%).
• Social infrastructure, including health and education, will get 3% of the capital expenditure, with digital communication and industrial expenditure each getting the same amount as well.
• Agriculture and food processing infrastructure will get 1% of the planned capital expenditure.

Benefits

• It will enable infrastructure development in an efficient manner, create employment opportunities, improve ease of living, build investor confidence, crowd in the private sector investments, create additional fiscal space for the government and even reduce the Non-Performing Assets of banks due to better project monitoring.