Finance minister Nirala Sitharan announced to invest Rs 102 lakh crore in the infrastructure sector. This is to achieve the Narendra Modi government’s vision to make India a $5 trillion economy by 2024-25.
A task force led by economic affairs secretary has been appointed to prepare a road map for the “national infrastructure pipeline” from 2019-20 to 2024-25 under the Rs 100 lakh crore infra plan.
Updates from Nirala Sitharaman press conference
- Rs 3.07 lakh crore will be spent on industrial infrastructure and Rs 77 lakh crore would account for Irrigation and rural infrastructure projects. Remaining would account for Agriculture and social infrastructure.
- Rs 19.63 lakh crore would be used for road projects and Rs 13.68 lakh crores for railway projects.
- 1 lakh crore for port projects and airports will see spending of Rs 1.43 lakh crore. Rs 16.29 lakh crore has been reserved for urban infrastructure, whereas Rs 3.2 lakh crores for the telecom industry.
- The sector-wise break-up announced by the Finance minister has 24.54 lakh crore reserved for the energy sector out of which 24.54 lakh crore would be spent in the only power sector.
- Rs 42 lakh crore has been fixed for the NIP projects which are in the implementation stage now including the expressways, national gas grid, and PMAY-G.
- The details of investment plans under NIP for Gujarat, Bihar, West Bengal, and Rajasthan are yet to be out.
- It has also mentioned that around 43% of the projects are under implementation and 33 % are under yet to be idealized and 19% are under development.
- The Central government and the state government will have an equal share of 39% each in the NIP and private sector 22% which is expected to be increased to 30% by 2025.
- Port and Airport projects ill have Rs 2.5 lakh crore in their bags, whereas Rs 3.2 lakh crores have been allocated for digital-infra projects. Besides this, rs 16 lakh crores have been assigned for irrigation rural, Agri and food processing projects identified. Rs 16 lakh crore for infra projects including mobility projects.
- She further added the well-developed infrastructure will enhance the economic activity creating fiscal space by improving the revenue base of the government ensuring the quality of expenditure focused in productive areas.
- FM said, 18 states so far have come up on board.
- Reform ideas by various groups will be taken with great sincerity. This will include reforming the PPP based contracts, enforcement of contracts and dispute resolution process.
- It is estimated that India needs to spend $4.5 trillion by 2030 to sustain is growth.
- The Finance Minister said the center and the state government has spent Rs 51 lakh crore in the last 6 years.
- She further said, Power, railways, urban irrigation, mobility, education, health form bulk of infra project pipeline.
- The finance minister said the projects will encourage more infrastructure projects, grow businesses, create jobs, improve ease of living and provide equal access to infrastructure for all.