National Infrastructure Pipeline (NIP)

WHY IN NEWS?

The task force on National Infrastructure Pipeline (NIP) headed by Atanu Chakraborty has submitted its final report to the Finance Minister.

ABOUT NATIONAL INFRASTRUCTURE PIPELINE (NIP)

• NIP is a government exercise to provide world-class infrastructure across the country and improve the quality of life for all citizens.
• To draw up the NIP, a bottom-up approach was adopted wherein all projects (Greenfield or Brownfield, Under Implementation or under conceptualisation) costing greater than Rs 100 crore per project were sought to be captured.
• NIP includes economic and social infrastructure projects.
• The initiative aims to improve infrastructure project preparation and attract new investments both foreign and domestic.
• It will be crucial for target of becoming a $5 trillion economy by FY 2025.
• Important recommendations of the Task Force:
  • Recommends ?111 lakh crore investments over the next five years (2020-2025) to build infrastructure projects and drive economic growth.
  • Energy, roads, railways and urban projects are estimated to account for the bulk of projects (around 70%).
  • The centre (39 percent) and state (40 percent) are expected to have an almost equal share in implementing the projects, while the private sector has 21 percent share.
  • Monetisation of infrastructure assets.
  • Setting up of development finance institutions.
  • Strengthening the municipal bond market.