Union Minister of Finance Nirmala Sitharaman has outlined an infrastructure project pipeline worth more than Rs 102 lakh crore to be implemented over the next five years. This will serve as one of the key drivers of faster economic growth and the government’s ambition of turning India into USD five trillion economy by 2024-25.
The projects have been classified under two broad categories -- economic infrastructure and social infrastructure for both ease of doing business and ease of living. Under these, the Centre unveiled the National Infrastructure Pipeline (NIP) on 31 January 2019.
NIP is a booklet prepared by a task force that gives details of infrastructure projects in which the energy sectors make up the lion’s share of 24 percent, followed by roads (19 percent), urban development (16 percent) and railways (13 percent). The share of rural and social infrastructure projects, which include health, education and drinking water, is eight percent and three percent respectively.
The Ministry of Finance has taken 32 measures since August 2019 to boost economy, including corporate tax cuts at a cost of Rs 1.45 lakh crore to the exchequer to attract investments and about Rs five lakh crore in disbursal of bank loans since October 2019 to spur demand. The private companies will account for 22 percent to 25 percent of the investments and the balance will come from the Centre and the states in equal proportions.
The task force prepared NIP in record time, holding 70 conferences of entities engaged in various sectors, and the government will examine its recommendations to take speedy action. The task force was constituted to draw up NIP under the chairmanship of the Economic Affairs Secretary.
The task force held its first meeting in September 2019. Out of the total expected capital expenditure of Rs 102 lakh crore, projects worth Rs 42.7 lakh crore (42 percent) are under implementation, projects worth Rs 32.7 lakh crore (32 percent) are in the conceptualization stage and the rest are under development.