The Cabinet intends to develop national infrastructure within the framework of the NIP to provide basic facilities to improve the quality of life.
The National Infrastructure Pipeline (NIP), which launched with 6,835 projects, has expanded to 9,335 projects with a total planned investment of nearly `108 trillion between FY20 and FY25, the Treasury Department told parliament on Monday.
Tamil Nadu accounts for the largest number of projects with an estimated capital investment of Rs 8.44 trillion, followed by Andhra Pradesh (8.04 trillion Rs), Maharashtra (Rs 7.69 trillion), Uttar Pradesh (5.26 trillion) , Karnataka (Rs 3.96 trillion) and West Bengal (Rs 3.65 trillion).
“The list is dynamic and is regularly updated,” Finance Minister Pankaj Chaudhary said in a written reply in the Lok Sabha.
Only four infrastructure sectors account for 71% of the expected infrastructure investment under the NIP: roads (23%), energy (21%), water and sanitation (15%) and railways (12%).
“At the launch of the NIP, it was envisaged that 18-20% of the NIP would be funded from the Center’s budget and 24-26% from the state budget,” Chaudhary said. The remaining funds were expected to be collected from a variety of sources, such as bond markets, banks, NBFCs, private developers, multilateral agencies, internal accruals, public sector companies, development and monetization financial institutions, he said.
The Cabinet intends to develop national infrastructure within the framework of the NIP to provide basic facilities to improve the quality of life. The NIP also covers agro-industries that help with poverty alleviation, better access to markets and employment in rural areas, Chaudhary said.
A task force under the then Economy Minister Atanu Chakraborty had submitted its final report on the NIP to Finance Minister Nirmala Sitharaman in April 2020. that of municipal bonds), setting up financial development institutions for the infrastructure sector and accelerating the monetization of infrastructure assets and land.
Higher investment in infrastructure will be essential to ensure India recovers from the unprecedented Covid-19 crisis at the earliest. The center has budgeted a 36% jump in its capital expenditures to a record `7.5 lakh crore for FY23 from the revised estimate for FY22 (excluding capital injection into Air India), with a particular focus on infrastructure creation. Subsequent fiscal capital expenditures will more than double from pre-pandemic (FY20) levels.
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