Infrastructure push (Making the NIP plan actually work)

Excellent study material for all civil services aspirants - begin learning - Kar ke dikhayenge!

 Infrastructure push (Making the NIP plan actually work)

---

Read more on - Polity | Economy | Schemes | S&T | Environment

---

• Tottering economy: The announcement of the biggest-ever infrastructure creation plan by Finance Minister (FM) was keeping in mind the great slowdown in Indian economy. It may work wonders.
• What is the plan: The FM's new plan talks of investments worth Rs.102 trillion (lakh crore) over next 5 years.

1. Name of plan - NIP - National Infrastructure Pipeline
2. Sectors covered - energy, roads, railways, urban infrastructure (and more)
3. 42% of these already under implementation, 19% under development, 31% at conceptual stage

• Task force approach: It spoke with the States, checking viability of each project. The NIP was then suggested as a window for the future.
• How to make it work: Only through constant monitoring and review will it work, otherwise remain a "list of projects". The FM promised periodic reviews.
• Benefits of NIP: Better ease of living (e.g. metro trains), more jobs, more demand for cement and steel.
• Easy, Tough: Making the NIP was the easier part, and pushing it through will be the real deal. Obstacles expected:

1. Financing plan is in the ratio of 39%, 39% and 22% for Central govt., States govt., and Private sector.
2. How will Centre raise its Rs.39 trillion over 5 years? And States are not in a position to do so, too.
3. Past few years' private sector investment trends show that asking them to put in Rs.22 trillion in 5 years is a tall order. (poor private investment is a big reson for 2019-20's slowdown)
4. Role of debt: Clearly, raising debt will be key to making NIP work. Will Indian banks be willing to lend to infra projects? (something that led to present NPA situation)
5. States' cooperation: Getting states to be part of this vision won't be easy.

• Go ahead: The NIP, if executed well, can turn things around.
• Summary : The National Infrastructure Pipeline (NIP) is the key to turning the slowed Indian economy around, provided it is executed well.

Read more on - Polity | Economy | Schemes | S&T | Environment

Join UPSC Self Prep course | Online Course (PT Gurukul)  | Covid Special Course | Join PT courses

* Content sourced from free internet sources (publications, PIB site, international sites, etc.). Take your own subscriptions. Copyrights acknowledged.