Task Force submits ₹111 lakh-cr national infra pipeline to FM

Task force constituted by the Union transport ministry to prepare a national infrastructure pipeline has listed infra projects worth ₹111 lakh crore to be executed in the next six years. It has also pledged 71% of the investment for roads, urban development and railways, energy and envisaged a key role for private investors. The task force under economic affairs secretary Atanu Chakraborty submitted its final report on the “national infrastructure pipeline” (NIP) to Finance Minister. The newest report has called for a set of reforms and suggested ways of financing it by deepening the corporate bond markets (including those of municipal bonds), setting up development financial institutions for the infrastructure sector, accelerating monetization of infrastructure assets and land. According to an official statement, of the total expected capital expenditure of ₹111 lakh crore, projects worth ₹44 lakh crore (40% of NIP) are under implementation, projects worth ₹33 lakh crore (30%) are at the conceptual stage and those worth ₹22 lakh crore (20%) are under development. The highest investments are proposed for the energy sector (24%), followed by roads (18%), urban development (17%) and railways (12%). The Centre and the state are expected to have almost equal share at 39% and 40% respectively in implementing the infrastructure pipeline, followed by the private sector (21%). The government aims to raise the share of the private sector to 30% in coming years and this requires massive reforms in the way the PPP model is designed, given the poor response of the private sector to such projects over the years. Elevated investments in infrastructure will be the key to ensuring that India recovers from the Covid-19 crisis at the earliest, official spokesperson said.