Govt to invest Rs 111 lakh crore in infrastructure by 2025

Over 70 pc of projected investment is in energy, roads, urban infrastructure and railways

Tribune Web Desk

Updated At : 02:29 AM Apr 30, 2020 IST

Tribune News Service

New Delhi, April 29

The final report of the Task Force on National Infrastructure Pipeline (NIP) has projected investment of Rs 111 lakh crore till 2025 in order to provide world-class infrastructure across the country, and thereby improve the quality of life for all citizens.

Compiled in three volumes, the final report presented on Wednesday to Union Finance Minister Nirmala Sitharaman increased the expected investment by about 10 per cent as compared to the earlier projections.

The report noted that projects worth Rs 44 lakh crore or 40 per cent of those identified by the task force are already under implementation. Another 30 per cent—worth Rs 33 lakh crore—are at conceptual stage and projects worth Rs 22 lakh crore (20 per cent) are under development. Strangely, the official press release said there was no information regarding project stage for 10 per cent of the works worth Rs 11 lakh crore.

Over 70 per cent of the projected investment is in four sectors — energy, roads, urban infrastructure and railways.

As for investment, the report envisages states spending slightly more than the Centre with the private sector expected to contribute 21 per cent

Sitharaman in her Budget speech 2019-20 had announced that Rs 100 lakh crore would be invested on infrastructure over the next five years. This was after Prime Minister Narendra Modi spoke of Rs 100 lakh crore having been earmarked for infrastructure development in his Independence Day speech last year.

The government claims that NIP is a “first-of-its-kind, whole-of-government exercise which aims to improve project preparation, attract investments into infrastructure, and will be crucial for target of becoming a $ 5 trillion economy by 2025.

The report has also suggested ways and means of financing the NIP through deepening Corporate Bond markets, including those of Municipal Bonds, setting up Development Financial Institutions for the infrastructure sector and accelerating the monetisation of infrastructure assets.

The task force has suggested the setting up of several more committees – one to monitor progress, one at each Infrastructure ministry level and the last one in the Finance Ministry to raise financial resources for NIP.