Government unveils Rs 102 lakh crore for Infrastructure development

Government unveils Rs 102 lakh crore for Infrastructure development

Government unveils Rs 102 lakh crore for Infrastructure development

The government unveils 102 lakh crore rupee for infrastructure development.it will boost the Indian economy to achieve 5 trillion economies. As the infrastructure sector plays an important role in the economy. National infrastructure development gives priority to energy, roads, urban infrastructure, railways, irrigation, rural infrastructure, and communication, etc. in 5 years.

Infrastructure and economic development

            To achieve 5 trillion dollar economy by 2024-25, India has to spend about 1.4 trillion dollars on infrastructure. So that it won’t affect the growth of the Indian economy. Nirmala Sitaraman the finance minister of India told that government will go through the recommendation of the task force and take action as soon as possible.

The government set up a task force to draw a pipeline for infrastructure development in September 2019. It was headed by the economic affairs secretary while the CEO of NITI Aayog, Expenditure Secretary and secretaries of various ministries were members. The task force drew up annual infrastructure pipeline for every 5 years starting from 2019-20 to 2024-25 year. The tasks force identified technical feasible and economically viable infrastructure. Listed the annual infrastructure investment and also identifying the appropriate sources of financing and suggested some measures to monitor the project to minimize the cost and time.  Within 4 months this tasks force gave the report to the finance minister.

Infrastructure development in India need and importance  

This process, the first of its kind, it is expected to be followed up by cyclic review. National infrastructure will open the gate for fore ward outlook on infrastructure development which will generate jobs will improve ease of doing business, improve ease of living and it provides access to infrastructure equally for all. It also includes social and economic development projects.

Infrastructure development in India suggestion

In the energy sector, it includes both conventional and non-conventional energy govt. will invest 24% inroads 19%, urban development 16%, railways 13%,irrigation 8%,Rural infrastructure 8% etc. 42% project is under implementation  and 32% are in the conceptualization stage and rest are under development.

Government unveils Rs 102 lakh crore for Infrastructure development for various sector

Infrastructure development in India 2019

The total national infrastructure pipeline projects worth 102 lakh crore, which is spread across 18 states and union territories over the next 5 years. The government expects that other states/UTs will submit their proposal; another 3 lakh crore will be added to the 102 lakh crore. The center and the state share equally of 39% each in the infrastructure sector and the private sector will chip the rest of 22%. The private sector’s share will increase by up to 30% by 2025.

Government unveils Rs 102 lakh crore for Infrastructure development for various sector

Key benefits of this infrastructure development

            As the government invests huge money it will generate jobs, will improve ease of doing business, improve ease of living and it provides access to infrastructure equally for all. It will significantly benefit different sectors like the economy, government, developers, banks/financial institutions/investors. Flexibility is the key feature of this infrastructure development.

Economy

Infrastructure development is the preliminary steps for the construction and improvement of the country’s economy. Well planned infrastructure development pipeline will open the gate for more infra projects will generate jobs, will improve ease of doing business, and improve ease of living and making growth more inclusive.

Government

            Developed infrastructure boosts economic activity. As the government spends on infrastructure means it builds some assets so it is capital expenditure. In future government can generate revenues from this whether it is direct or indirect.it creates extra fiscal space by increasing the revenue base of government and it ensures a qualitative expenditure focused in a productive area.

Developers

            Developers mean the company which involves in construction will get a better view of project supply; will get sufficient time for project bidding. It will decrease the failure in project delivery.  It will increase the investor’s confidence.

Banks/Financial institutions (FIs)/investors

            As the builders get sufficient time for the bidding, better prepare and less chance to suffer stress given active project monitoring. It will reduce the no of bad loans and NPAs so it will boost the investors’ confidence.

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