National Infrastructure Pipeline (NIP) – UPSC

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According to report of Task Force under the Secretary of Department of Economic Affairs (Ministry of Finance) was constituted to draw up a National Infrastructure Pipeline. It is also called a National Infrastructure vision 2025.

India needs to spent 1.4 trillion USD or 100 lakh crore rupees on infrastructure, if we want to achieve target of 5 trillion USD.

NIP is an investment plan with a corpus of Rs102 lakh crore, for a period of 6 years from FY 2019-20 to FY 2024-25.

Objectives :

Sector-wise share in infrastructure investmrnt of NIP
  • To achieve the target of $5 trillion economies by 2025
  • Facilitate generic and sectoral reforms in regulation and
  • Administration of public infrastructure services as per global best practice
  • To push India up in global rankings in public infrastructure

Funding for national infrastructure pipeline will be given by three entities:

  • Central government (39%)
  • State Government (39%)
  • and also the private sector. (22%)

Emphasis will be given to projects on Safe drinking water, access to clean and affordable energy, healthcare for all, modern railway stations, airports, bus terminals, and world-class educational institutes.

The Investment plan include investment in both economic and social infrastructure.

Economic investment refers to investment in road, steel, commerce, tourism, etc. and Social investment refers to investment in school education, higher education, health, water, housing, and urban affairs, etc.

Includes projects which are under construction proposed greenfield projects, brownfield projects, and those at the conceptualization stage.

Source: Report on NIP of the Task Force Department of Economic Affairs Ministry of Finance,
Government of India

In last year 2018-19, the task force was contituted under the secretory of department of economic affairs. the purpose of formation of task force was to draw up a national infrastructure pipeline, accordingly this task force come up with pipeline.

The total capital expenditure in infrastructure in the infrastructure sector during these years is projected to be around 102 lakh crore rupees. This is going to be invested in on more than 6,500 projects across the various sector.

However, emphasis will be given to save drinking water, access to clean and affordable energy, health care for all, development of railways, airports, bus stations, and world-class educational institutions.

It also aims to facilitate reforms and regulation and also in administration in public infrastructure service.

These reforms shall be generic and sectoral and as per best practices followed in the globe. this pipeline aims to push India up in global ranking which comes to public infrastructure.

Sector-Wise brake-up of National infrastructure pipeline, source: Report on NIP of the Task Force Department of Economic Affairs Ministry of Finance,
Government of India

Out of the total of 100 lakh crore rupees capital expenditure, 80% goes to roads, urban housing, roads, railway, power, irrigation. it is being observed that close to 19.64 lakh crore rupees will be given for the road sector. Whereas 1.56 lakh crore together is to be given for total entire education sector it includes both school and higher education.

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