INR 111 Lakh Cr infra investments for 2020-25 period
The task force on National Infra Pipeline (NIP) in its final report to finance minister Smt. Nirmala Sitharaman projected total infrastructure investment of Rs 111 lakh crore during 2019-20 to FY25. The high-level panel, chaired by economic affairs secretary Atanu Chakraborty, has also suggested reforms such as accelerating monetization of infrastructure and land assets, and establishing a dedicated development financial institution for the sector. It also highlighted the need to deepen the corporate bond market including municipal bonds.
The committee’s three-volume report revealed the policy deficits and challenges in India’s infrastructure sector and recommended reforms to scale up investment in the sector. The study also captured some of the national and global trends in the infrastructure space. The group proposes that the Centre would invest 39% of the projected expenditure for NIP projects while states’ share would be 40%, with the rest 21% coming from the private sector.
Another suggestion offered by the panel pertained to creating three committees – one to monitor NIP progress and eliminate delays, another at the ministry level to monitor implementation, and a third in the finance ministry for raising financial resources for NIP projects.