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Building New India through the National Infrastructure Pipeline

- September 2020 | By Vidhi Goel

IIG is set to host the National Infrastructure Pipeline- an effort to augment India's infrastructure through an identified investment of Rs. 111 Lakh crore between FY 2020-25.

National Infrastructure Pipeline (NIP) is a first-of-its-kind exercise to provide world-class infrastructure across the country and improve the quality of life for all citizens. It aims to improve project preparation and attract investments from domestic and foreign investors. NIP will be crucial to achieve the target of becoming a $5 trillion economy by FY 2025. The Summary Report of NIP for 2019-2025 was released by the Finance Minister on December 31st, 2019.

Finance Minister Smt. Nirmala Sitharaman in her Budget speech 2019-20 announced that Rs. 100 lakh crores would be invested in infrastructure over the next five years. The Prime Minister, Shri Narendra Modi, in his Independence Day speech 2019 reiterated that “For development of modern infrastructure, an amount of Rs. 100 lakh crore has been earmarked for this period which will create new job opportunities besides improving the living standards.”

To draw up the NIP, a bottom-up approach was adopted wherein all projects (Greenfield or Brownfield, Under Implementation or under conceptualization) costing greater than Rs 100 crore per project were sought to be captured.

The Final Report of NIP Task Force is projecting total infrastructure investment of Rs 111 lakh crore during the period FY 2020-25. The Final Report of NIP task force, presented to the Finance Minister on 29th April, and released on the Department of Economic Affairs website on the 30th of April, is available here (Vol I) and here (Vol II).

Out of the total expected capital expenditure of Rs. 111 lakh crore, projects worth Rs 44 lakh crore (40% of NIP) are under implementation, projects worth Rs 33 lakh crore (30%) are at conceptual stage and projects worth Rs 22 lakh crore (20%) are under development. Information regarding project stage are unavailable for projects worth Rs 11 lakh crore (10%).

Sectors such as energy (24%), roads (18%), urban (17%) and railways (12%) amount to around 71% of the projected infrastructure investments in India. The Centre (39%) and States (40%) are expected to have almost equal share in implementing the NIP, followed by the private sector (21%).

The NIP project database would soon be hosted on IIG to provide visibility and help in its financing with prospective domestic and foreign Investors. With the help of IIG, investors will be able to access updated project level information. Each line Ministry/State would further add new projects and update their respective project details on IIG at pre-defined time intervals so that updated data is available to prospective investors.