Funding National Infra Pipeline would be a 'challenge': Economic Survey 2019-20
To achieve GDP of USD 5 trillion by 2024 – 2025, India needs to spend about USD 1.4 trillion (Rs.100 lakh crore) over these years on infrastructure so that lack of infrastructure does not become a constraint to the growth of Indian economy, the survey said.
by Nishtha Saluja
NEW DELHI: Funding of the Rs 102 lakh crore National infrastructure pipeline recently unveiled by the Indian government “would be a challenge”, the Economic Survey for 2019-20 said.
The national infrastructure pipeline released in December last year will enable well prepared infrastructure projects that will create jobs, improve ease of living and provide equitable infrastructure access to make growth more inclusive, the Survey said.
“It is hoped that a bouquet of well-prepared projects would attract investment from Central and State Governments, Urban Local Bodies, Banks and Financial Institution, PE funds, and private investors, both local and foreign,” the survey tabled in the Parliament on Friday said.
To achieve GDP of USD 5 trillion by 2024 – 2025, India needs to spend about USD 1.4 trillion (Rs.100 lakh crore) over these years on infrastructure so that lack of infrastructure does not become a constraint to the growth of Indian economy, the survey said.
The inter-ministerial task force set up under the chairmanship of Secretary, department of economic affairs of the ministry of finance, has given its recommendations on required changes to several key sectoral policies and other reform initiatives by the Central and State Governments.
These include developing a robust bond market for infrastructure companies, speedy resolution of infrastructure disputes, optimal risk sharing through better and balanced PPP contracts, and sanctity and enforceability of contracts.
As per the Pipeline, Central Government (39%) and State Government (39 %) are expected to have equal share of funding of the projects followed by the private sector (22%).