The Rs 111 trillion National Infrastructure Pipeline (NIP) that was to run from 2020-2025 has over 9,666 projects and schemes covering 37 sub-sectors in various stages of implementation or already completed, according to the survey.
“Out of these projects, 4,413 projects (46%) are under implementation while 2,062 projects (21%) have been completed,” the survey said.
NIP includes infrastructure projects of more than Rs 100 crore each covering greenfield and brownfield investments.
As of April 2024 out of the total capital outlay under NIP, the transportation sector dominates with a contribution of 58%, followed by the energy sector at 24 %, and the water and sanitation sector at 12 % and the balance five per cent by other sectors such as social infrastructure and communication.
The NIP projects are monitored through India Investment Grid (NIP-PMG) integrated portal. According to the portal, the total project cost of the projects is Rs 153.1 trillion.
Transformative changes have dawned upon the infrastructure landscape of India. The consistent focus on road, rail and air connectivity, sanitation and digital infrastructure have brought in a considerable growth in assets in these sectors. However, infrastructure-creation efforts in India are predominantly public sector-led which includes the Government agencies and state-owned entities and banks. Between fiscal year 2019 and 2023, the central and state governments contributed to 49 % and 29 % of the total investments while the private sector contributed 22 %.
For India to continue down the path of building quality infrastructure, a higher level of private sector financing and resource mobilisation from new sources will be crucial. Facilitating this would not only require policy and institutional support from the Central Government, but State and Local Governments would have to play an equally important role.
Pooled financing mechanisms for municipal projects, specialised municipal intermediaries, asset recycling programs, tax increment financing and land sales and development rights and other innovative approaches can help.
The capital investment by the Government and private sector in roads and highways rose from 0.4 % in FY15 to about 1.0 % of GDP (around Rs 3.01 trillion) in FY24, the survey said.
Capital expenditure on railways has increased by 77% in the last five years to Rs 2.62 lakh crore in 2023-24 with significant investment in the construction of new lines, gauge conversion and doubling,
The share of gross budgetary support to two key connectivity segments – railways and National Highway Authority of India, in the total capital expenditure of the Union Government increased from 36.4 % in FY21 to 42.9 % in FY24. These two components of capital expenditure increased by 2.6 times from FY21 to FY24 in their absolute values.
The support of the Union Government for capital expenditure of the State Governments and institutions increased by 31.6 % between FY21 and FY24.
While the road network has seen impressive expansion in the recent past, the development along the developed national highways is posing a challenge for the construction of a new parallel road and bypasses.
Now, the Government has started focusing on the development of access controlled national highways. The Government is also aiming to make all highways of a minimum of two lanes with paved shoulders standards, the survey said.
