Infra projects worth ₹44 lakh-cr reach implementation stages

The Central government is in the process of implementing infrastructure projects worth ₹44 lakh crore as a part of the ₹111 lakh crore National Infrastructure Pipeline (NIP). Union Transport Minister Nitin Gadkari informed that the projects worth ₹22 lakh crore that account for 20 per cent of NIP are under development stages. The framework of NIP includes 39 per cent investment by the Centre, 40 per cent by states and 21 per cent by the private players across roads, ports and highways, waterways sectors and the entire targeted investment will be carried out by 2024-25. Under the program, ₹25 lakh crore worth of investments are envisaged in the energy sector, ₹20 lakh crore in the highways sector, ₹16 lakh crore in irrigation, rural agriculture and food processing, ₹16 lakh crore each in mobility and railways and ₹14 lakh crore on digital infra among others. The highways sector commands huge biz potential and the toll income is slated to reach ₹1 lakh crore in five years from ₹34,000 crore this year and the sector holds lucrative investment opportunities given 100 per cent FDI permitted in the sector. The government has ensured minimum risk to the private sector through various policy initiatives and has introduced low-risk models like hybrid annuity models for the sector. A target of ₹15 lakh crore investments has been set for the sector for the next two-three years. The ₹1 lakh crore Delhi-Mumbai expressway corridor spanning 1,300 km is likely to be completed in the next two years with 50 per cent of the project already completed, while two more express highway projects worth ₹65,000 crore will be launched shortly.