Finance Minister Nirmala Sitharaman in her Budget speech announced the funding fineprint for the ambitious National Infrastructure Pipeline (NIP), which comprises infrastructure investment opportunities worth Rs 103 lakh crore involving 6,500 projects to improving ease of living.
The National Infrastructure Pipeline (NIP), published on December 31 by the Department of Economic Affairs, Government of India, fleshes out India’s infrastructure investment requirements till 2025 in terms of individual sectors and projects. This includes greenfield and brownfield projects costing above Rs 100 crore each.
Out of the projects included in the pipeline, 43 percent are under implementation, 33 percent are at conceptual stage and 19 percent are under development. The projects belong to sectors such as power, including renewable, railways, urban development, irrigation, mobility, education, health, water and digital sector.
The infrastructure projects are spread across 18 states and union territories. Energy, roads, urban development and railways constitute 70 percent of projected capital expenditure in India. Rs 25 lakh crore worth energy projects have been lined up, around Rs 20 lakh crore in roads and nearly Rs 14 lakh crore railway projects are in the works for the period of 2020-25.
With a continued focus on urban infrastructure, schemes such as AMRUT, Smart Cities mission and affordable housing will need an investment of Rs. 16 lakh crores until 2025.
While the Centre and the State will invest an equal share of 38 percent each in the capital expenditure, the private sector participation has been set at 22 percent. By 2025, the government expects the private sector participation to rise to 30 percent.
To encourage higher engagement of private sector, Sitharaman said the government plans to reform PPP-based contracts, ensure enforcement of contracts and improve dispute resolution process.
Renewed focus on infrastructure projects is likely to boost investment and generate employment opportunities.
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