This would be a significant increase over the last six years, when the Centre and States together spent ₹51 lakh crore on infrastructure.
The Finance Ministry in a tweet termed the step as “Taking India to New Heights: Building Infrastructure to spur inclusive growth.”
A task force chaired by Economic Affairs Secretary Atanu Chakraborty held consultation with 18 states and 22 ministries in this regard. And on December 31, the Finance Minister announced plans to invest more than ₹102 lakh crore on infrastructure projects.
Further, another ₹3 lakh crore worth of projects will be added soon. This means a blueprint of around ₹105 trillion will be set in the next few weeks.
— Plan to invest ₹102 lakh crore in basic infrastructure initiated
— ₹24.54 lakh crore worth projects belong to energy sector
— ₹19.6 lakh crore to be invested in road related projects
— Preparations to invest ₹13.6 lakh crore in railway projects complete
— ₹16.29 lakh crore to be spent on urban development projects
— Plans to invest ₹7.72 lakh crore on basic infra in rural areas
— ₹3.56 lakh crore to be spent on basic infra of Education, Health, Tourism, Sports
— Work underway on projects worth ₹42 lakh crore out of the total
— Work underway on blue print of ₹32.7 lakh crore
The biggest question is, where will such a huge amount of money come from? For now, efforts are underway to ensure that the Centre, States and the private sector share the capital expenditure in a 39:39:22 formula. Later, share of private sector’s partnership can rise. The task force set up on such matters has recommended that
–Competition and Quality will be encouraged in Public-Private Partnership projects
–Elaborative reforms to ensure strict adherence of conditions of contract
–Availability of funds for infrastructure through reforms in Bond market & Credit market to encourage investment
–Special mechanism to be set up for monitoring of projects and finalise action plan in the set time frame
As per promises made in the budget, outline of the National Infrastructure Pipeline has been revealed, but the biggest challenge now remains, how the centre, states and private sector undertake their responsibilities to fulfill them.