National Infrastructure Pipeline

• This scheme was brought in so as to improve project preparation and attract investments into infrastructure, which is essential for attaining the target of becoming a $5 trillion economy by FY 2025.
• It covers both economic and social infrastructure projects. The creation of new infrastructure assets will provide impetus to employment and generate income thus improving the overall competitiveness of the economy.

Need for National Infrastructure Pipeline

• $5 trillion Goal: It will help achieve the goal of GDP of $5 trillion by 2024-25, as a nation needs to spend about $1.4 trillion (Rs. 100 lakh crore) over these years on infrastructure.
• Inclusive growth: Uniform availability of robust infrastructure facilities is essential to achieve broad-based and inclusive growth on a sustainable basis.
• Poor infrastructure: in various sectors of the economy has hampered the growth potential of the nation.
• Investor confidence: It will aid in building investor confidence as identified projects are likely to be better prepared, exposures less likely to suffer stress given active project monitoring, thereby less likelihood of NPAs.

Objectives of National Infrastructure Pipeline

• It will facilitate the growth of businesses, create jobs, improve ease of living, and provide equitable access to infrastructure for all, making society more inclusive.
• It will help increase economic activity and create additional Fiscal space by improving the revenue base of the government.
• It will provide planned development of projects, better preparation for project bidding, reduce aggressive bids/ failure in project delivery, ensure enhanced access to sources of finance as a result of increased investor confidence.

Significance of National Infrastructure Pipeline

• Economic growth: It is anticipated that India will require $4.5 trillion in infrastructure spending by 2030 to maintain its current growth pace. The National Infrastructure Pipeline (NIP) is working to make this happen as quickly as possible.
• Employment: A well-planned NIP will allow more infrastructure projects, businesses to develop, jobs to be created, living conditions to improve, and equitable access to infrastructure for all, resulting in more inclusive growth.
• Fiscal space: Well-developed infrastructure boosts economic activity, frees up fiscal space by increasing the government''s tax base, and guarantees that government spending is concentrated on productive areas.
• Better Projects: National Infrastructure Pipeline will ensure that infrastructure projects are properly planned and implemented. It will provide a clearer picture of project supply, more time to prepare for project bidding, less aggressive bids/project failures, and improved access to capital sources as a result of higher investor trust.
• Benefits to agriculture: It will improve agricultural and rural infrastructure. Irrigation and rural infrastructure projects will cost a total of 7.7 lakh crore.
• Connection: It would improve India''s connectivity, particularly in rural areas. Road construction will cost Rs. 19.63 lakh crore, while railway developments will cost Rs. 13.68 lakh crore.
• Credit: Due to the ongoing NPA issue and a lack of credit creation in the economy, there is a dearth of private investment. As a result, the government must invest from its own funds to give the economy a boost.

Limitations Associated with National Infrastructure Pipeline

• It puts increased pressure on the banking sector as they are recovering from NPA problems and if pushed to fund for this project they may further face the NPA crisis.
• It is a project of immense scale and volume and therefore its implementation will not be easy. Coordination among various levels of government is a must.
• Land acquisition is a big challenge for the completion of infrastructure projects.
• Displacement and therefore rehabilitation of millions of people is a difficult task