Nirmala Sitharaman announces Rs 102 lakh crore National Infrastructure Pipeline
The Finance Minister Nirmala Sitharaman on 31st December 2019 announced that the Modi Government is mulling to launch a National Infrastructure Pipeline (NIP).
The Finance Minister Nirmala Sitharaman on 31st December 2019 announced that the Modi Government is mulling to launch a National Infrastructure Pipeline (NIP). Addressing the media in New Delhi on 31st December 2019, Sitharaman said that the task force created by the government for infrastructure has recommended projects worth Rs 102 lakh crore under the National Infrastructure Pipeline, going beyond the government`s initial target of Rs 100 lakh crore.
Nirmala Sitharaman further said that investment of another Rs 3 lakh crore would be added to the pipeline and said that around 63 per cent of the projects in the National Infrastructure Pipeline are firmed up. The Centre and the states would have equal share of 39 per cent in the proposed NIP and private sector would have 22 per cent which the government expects to increase to 30 per cent by 2025.
Hailing the Modi government's move Anshuman Magazine, Chairman & CEO, India, South East Asia, Middle East & Africa at CBRE said, "It is a welcome move from the point of view of the infrastructure sector in the country and reinforces the government’s commitment towards making India a leading world economy. It is clear that the government is willing to do the needful and is ready to take the initiative by providing required funds. Infrastructure projects worth Rs 102 lakh crore for next five years under National Infrastructure Pipeline will provide opportunities to all the stakeholders engaged in areas such as urban development, renewable sector, railways, irrigation, mobility, education, health, water and digital and will pave the way for long term development in all other areas. The step will also go a long way in the ambitious program to make India a USD 5 trillion economy by 2025. It is a good time for everyone present in the infrastructure sector and we all must be prepared to do our bit."
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Sitharaman outlined that the task force held 70 different consultations with several stakeholders including ministries, states, infrastructure companies, developers among others in the last four months.
Key takeaways of the NIP:
1] The NIP will be completed in the next five years.
2] Taskforce for infrastructure investments already constituted four months ago.
3] Rs 102 lakh crore of NIP project worth identified by the infrastructure investment task force after consultation with 70 stakeholders.
4] In the coming next three weeks, another Rs 3 lakh crore project will be added to the NIP.
5] NIP coordination mechanism between center and state to be introduced soon.
6] Around Rs 25 lakh crore energy projects under NIP. Roads to get nearly Rs 20 lakh crore, around Rs 14 lakh crore for railway projects.
7] Over Rs 16 lakh crore infra projects including mobility projects.
8] Annual Global Investor Meet to be held in 2020 and it would be organised in first half of 2020.
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