India is one of the biggest countries in the world. And infrastructure is the backbone of the country. The National Infrastructure Pipeline is a crucial project undertaken by the current dispensation at the centre and is an important question for the UPSC examination. This article discusses the national infrastructure pipeline for UPSC in detail and also the National Asset Monetization Pipeline.
The National Infrastructure Pipeline, or NIP, is an ambitious central government project envisaged by the Narendra Modi government in 2020. The initial time frame of the project has been set between 2020 and 2025. The primary purpose of the NIP project is to develop international-standard infrastructure in the country. Improved infrastructure will also attract top-class investment in the country and goes with the government's plan to promote the Make in India initiative. The NIP is also formulated to help India become a US$5 Trillion economy by 2025. NIP will cover both social and economic infrastructure projects in the energy, railways, urban, and roads segments.
To devise the NIP, the Finance Ministry, headed by Smt. Nirmala Sitharaman constituted a high-level Task Force. The Task Force is headed by the Secretary, Department of Economic Affairs, Ministry of Finance. On 29th April 2020, the Task Force released the National Infrastructure Pipeline Final Report through the Union Finance and Corporate Affairs Minister.
The National Infrastructure Pipeline has so far approved 9,318 projects in 34 sub-sectors. The total project cost of these projects is $2231.40 Billion. Presently, 2,465 projects are under development.
National Infrastructure Pipeline Significance
Robust infrastructure is the prime contributor to a nation's economic growth. And the National Infrastructure Pipeline aims to bridge the gap between the demand for improved infrastructure and the supply of resources. The NIP aims to create a valuable bonding between governmental resources and private companies' expertise to create effective socio-economic development models. It gives a thrust to the Indian government's objective to become a US$5 Trillion economy by 2025. It is believed that world-class infrastructure will also boost the manufacturing sector and create new jobs for Indian youth.
National Infrastructure Pipeline Benefits
The primary objective of the National Infrastructure Pipeline is to develop the economy by creating more jobs and ensuring seamless connectivity between Indian cities. Improving the infrastructure is paramount for attracting domestic and international investors. It will also make growth and development more inclusive.
The pipeline will streamline project designing, execution, and financing. NIP eliminates confusion by monitoring and managing projects and introducing reforms and changes as and when applicable. Proper infrastructure up-gradation will also make India ready to realize its dream of becoming a US$5 Trillion economy.
What is the National Asset Monetisation Pipeline?
For the UPSC examination, both the national infrastructure pipeline and the national asset monetization pipeline are equally important.
The national asset monetization pipeline, also known as NMP, goes hand in hand with the NIP. Through the NMP, the government wants to monetize the assets of existing public sector entities and central ministries. The NITI Aayog has prepared NMP in association with infrastructure line ministries. The primary objective of NMP is to monetize assets worth INR 6.0 lakh crore through privatizing the core and captive assets of the Central Government between FY22 and FY25.
FAQs on National Infrastructure Pipeline
Q.1) What is the National Infrastructure Pipeline?
The National Infrastructure Pipeline or NIP is an ambitious central government project envisaged by the Narendra Modi government in 2020 to develop international-standard infrastructure in the country.
Q.2) What is the National Asset Monetization Pipeline?
Through the National Asset Monetization Pipeline, the government wants to monetize the assets of existing public sector entities and central ministries.
Q.3) How many projects have been approved in the National Infrastructure Pipeline?
The National Infrastructure Pipeline has so far approved 9,293 projects in 34 sub-sectors.