The final report of the Task Force on National Infrastructure Pipeline (NIP) has projected infrastructure investments to the tune of Rs 111 lakh crore during FY20-25. The estimation is higher than Rs 102 lakh crore envisaged when the summary report was released in December-end 2019.
The revised projection comes in the wake of additional/amended data provided by Central Ministries/State Governments since the release of summary NIP Report.
The Task Force on National Infrastructure Pipeline (NIP) submitted its final reportto Union Minister for Finance & Corporate Affairs Nirmala Sitharaman on 29 April 2020.
Out of the total expected capital expenditure of Rs 111 lakh crore, projects worth Rs 44 lakh crore i.e. 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 and 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 with 39 percent and states with 40 percent are expected to have almost equal share in implementing the NIP in India, followed by the private sector with 21 percent.
The final report identifies and highlights recent infrastructure trends in India as well as global in all sectors of infrastructure. It also captures sector progress, deficits and challenges. In addition to update the existing sectoral policies, the Final Report also identifies and highlights a set of reforms to scale up and propel infrastructure investments in various sectors throughout the country.
The report has also suggested ways and means of financing NIP through deepening Corporate Bond markets, including those of Municipal Bonds setting up.
The Development Financial Institutions for the infrastructure sector, accelerating monetisation of infrastructure assets, land monetisation, among others.
The Task Force has recommended that three committees be setup, a committee to monitor NIP progress and eliminate delays; a steering committee in each Infrastructure ministry level for following up implementation; and a steering committee in the Department of Economic Affairs (DEA) for raising financial resources for NIP.
While basic monitoring will vest with the ministry and project agency, there is a need for higher level of monitoring on reforms to be undertaken and to deal with issues of stalled projects.
The NIP project database would be hosted on India Investment Grid (IIG) shortly to provide visibility to NIP and help in its financing with prospective investors; domestic and foreign, able to access updated project level information. Also, each line Ministry/State will further add new projects and update their project details at pre-defined time intervals so that updated data is available to prospective investors.