The Union Finance Minister Nirmala Sitharaman announced six yearlong National Infrastructure Pipeline projects worth Rs 102 lakh crore that extend to 2024-25. Through the plan is a repetition of the earlier proposal submitted to the PM, it indicates that the government is going to fast track it in the context of the current slowdown.
Infrastructure is the area where the government can concentrate with more fund injection during the time of a slowdown to revive the economy. The project proposal came at a time when the combined investment by the centre, state and private sector declined slightly to Rs 10 lakh crore in 2018-19 compared to Rs 10.2 lakh crore in the previous year.
Announcing the details, the of the project that was already proposed by the Prime Minister on Independence Day, the FM also outlined the investment sharing formula between the centre, states and the private sector at 39:39:22. Energy sector gets the largest share with 24% of the total fund allocation.
Finance Minister asserted that the project will help India to become a $5 trillion economy.
The infrastructure sector project was designed a task force chaired by Economic Affairs Secretary Atanu Chakraborty as part of the National Infrastructure Pipeline.
The Finance Minister said another Rs 3 lakh crore is to be added to the plan soon.
The investment is scheduled for six years from 2019 to 2025. For the current year ie 2019-20, Rs 13.6 lakh crore investment is proposed.
Government sources indicated that the funding comes from budgetary and non-budgetary sources. Market loans and internal fund mobilisation from PSEs are also expected to support the plan.