Govt expands NIP from 6,835 to 9,335 projects

The National Infrastructure Pipeline (NIP), which was launched with 6,835 projects, has been expanded to 9,335 projects with a targeted investment of about ₹108 trillion between FY20 and FY25. Tamil Nadu accounts for the highest number of projects with an estimated capital outlay of ₹8.44 trillion, followed by Andhra Pradesh (₹8.04 trillion), Maharashtra (₹7.69 trillion), Uttar Pradesh (₹5.26 trillion), Karnataka (₹3.96 trillion) and West Bengal (₹3.65 trillion). The list is dynamic and gets updated periodically, minister of state for finance Pankaj Chaudhary informed.

Just four infrastructure sectors make up 71% of the projected infrastructure investments under the NIP: roads (23%), energy (21%), water and sanitation (15%) and railways (12%). At the time of launching the NIP, it was envisaged that 18-20% of NIP will be financed through the Centre’s budget and 24-26% will be financed through the state’s budget. The remaining funds are expected to be garnered from various sources, like bond markets, banks, NBFCs, private developers, multilateral agencies, internal accruals, public sector undertakings, development financial institutions and asset monetization. The government intends to develop rural infrastructure under the NIP to provide basic amenities to improve quality of life and it also covers agro-based industries that help in poverty alleviation, better access to markets and job opportunities in rural areas.