FM Sitharaman unveils Rs 102-trillion infrastructure plan to boost growth
Finance Minister Nirmala Sitharaman on Tuesday launched a National Infrastructure Pipeline (NIP), unveiling projects worth Rs 102 trillion, to boost economic growth and help the economy reach the $5-trillion target by 2024-25.
The NIP has identified projects across 23 sectors and 18 states and Union Territories, which will be funded over the next five years by the central and state governments as well as the private sector.
Addressing a press conference while launching the NIP report, Sitharaman said that of the proposed projects, 39 per cent each would be implemented by the Centre and states, and the rest 22 per cent by private players.
Dr Niranjan Hiranandani- National President- Naredco and Assocham expressed, “The Finance Minister has unveiled outlay of Rs.105 lakh crore infrastructure projects to be put out in 2020, which can be termed forward-looking for inclusive growth that promises to create jobs, enable a better lifestyle. We welcome the announcement under the National Infrastructure Pipeline Coordination Mechanism that will coordinate between center, state, and private sector. However, implementation of the projects with public-private partnership remains the key factor.
Private players are still facing an acute credit crunch. The government needs to address the issues of private players’ difficulties as well. The step taken by the government is a right step towards addressing the current economic setback.”
Shishir Baijal, Chairman & Managing Director, Knight Frank, “Today’s announcement has re-enforced the government’s commitment towards infrastructure growth providing the requisite clarity. Apart from the fact that a robust infrastructure is one of the key conditions to overall growth of the economy, this will create a stable base for India’s economic recovery soon. The infusion into the Infrastructural development will help in creating jobs and financial security in the mid-term helping in income generation and consumer spending in the economy. We welcome the qualifiers from the government and expect to see these fructify soon”.
Ashok Mohanani, Chairman, EKTA World, “The announcement by the FM on unveiling investment of Rs 102 lakh crore in the national infrastructural plan will boost the sector as sentiment will see an uptick. Given the economy’s situation, this is promising and will add impetus to the sector’s growth. The investment of Rs 20 lakh crore on road projects promises both quality infrastructure and better connectivity which will benefit both buyers and developers by providing good value to the housing assets. On the other hand with the central and state governments expectations on private shares of national infrastructure rising to 30 % from 22% will get the sector organised and act as a game changing regulatory. We are hopeful that the annual investors meeting will turn the tables for the sector at large and increase much needed liquidity in the sector. The New Year will certainly start on a great note as the SBI interest rate cut to 7.80% per annum from 8.05% per annum will come into effect from January 1st 2020 which will further reduce interest rates for existing home loans that will attract potential home buyers.”
The pipeline includes brownfield and greenfield projects by the Centre, states, the private sector, and state-
owned companies, as well as those under the public-private partnership model. According to the data given in the report, some Rs 42.7 trillion (43 per cent) worth of projects are under implementation, Rs 32.7-trillion (about 33 per cent) projects are at a conceptualisation stage, and Rs 19.1-trillion (19 per cent) projects are under development.
The NIP follows a commitment by Prime Minister Narendra Modi in his Independence Day speech, that more than Rs 100 trillion would be invested in infrastructure over the next five years.