New Delhi: Though economists at large are questioning how realistic a $5 trillion GDP target is for the struggling Indian economy, the government seems determined to achieve this target through various reforms.
Finance Minister Nirmala Sitharaman on Tuesday unveiled Rs 102 lakh crore of infrastructure projects, including Mumbai Ahmedabad High Speed rail, in the next five years to help achieve the target of $5 trillion (around Rs 356 lakh crore) economy by 2025.
The boost in infrastructure projects is expected to generate employment and therefore, consumption which has suffered a dip.
Addressing a press conference, she said Prime Minister Narendra Modi had in his Independence Day speech spoken of investing Rs 100 lakh crore in infrastructure.
Subsequently, a task force headed by the Economic Affairs Secretary identified Rs 102 lakh crore worth of projects after conducting 70 stakeholder consultations in a short period of four months, she said.
The minister said another Rs 3 lakh crore of projects will be added to this pipeline that includes Jewar Airport and Jal Jeevan Mission.
Of the Rs 102 lakh crore projects, Rs 42.7 lakh crore (43 per cent) projects are under implementation, Rs 32.7 lakh crore (about 33 per cent) worth of projects are at conceptualisation stage and Rs 19.1 lakh crore (about 19 per cent) worth of projects are under development, she said.
The projects are spread across 22 ministries and 18 states and union territories, she said, adding the government also intends to launch NIP, National Infrastructure Pipeline, a coordination mechanism consisting of the Centre, states and also the private sector for information dissemination together with monitoring the implementation of this entire framework.
These projects are on top of Rs 51 lakh crore spent by the Centre and the states during the last six years, she said.
With regard to investment, Sitharaman said that the new pipeline consists of 39 per cent projects each by the Centre and states and the balance by 22 per cent by private sector which could increase to 30 per cent by 2025.
Economic Affairs Secretary Atanu Chakraborty said projects worth Rs 13.6 lakh crore would be implemented during the current fiscal, followed of Rs 19.5 lakh crore in 2020-21 and Rs 19 lakh crore in 2021-22.
In the remaining three years, he said, during 2022-23 it would be Rs 13.8 lakh crore, Rs 12.8 lakh crore in 2023-24 while Rs 11.1 lakh crore in the terminal year of 2024-25.
The finance minister said the projects identified are in the sectors of power, railways, urban development, digital sector, irrigation, mobility, education, health, and others.
These sectors will form the bulk of the infrastructure investment under the National Infrastructure Pipeline, Sitharaman said.
Nearly Rs 25 lakh crore of energy projects have been lined up, the minister said, adding that another Rs 20 lakh crore in road and nearly Rs 14 lakh crore spending in railway projects have been lined up.
The finance minister said Rs 102 lakh crore National Infrastructure Projects will help make India a USD 5 trillion economy by 2025.
On the financing, she said, the government will look at deepening of debt market and alternative investment funds which will provide bulk of the debt financing necessary for this.
"We are looking at various steps to reform the PPP based contracts which have to be implemented. Dispute resolution related, enforcement of contracts which is a very critical component, all this is also being looked at when we're talking about reforming the entire process as per the suggestion given by various sub-groups under the task force," she said.
She also announced that the first edition of Annual Global Investors' Meet will be held in the second half of the coming year to meet investors at a single platform.
The first meeting of the Task Force was held in September 2019. Subsequently, several meetings were held with various Departments/Ministries engaged in infrastructure development, Corporates engaged in infrastructure development.
This exercise, the first of its kind, is expected to be followed up by a periodical review process, she said.
NIP, which includes economic and social infrastructure projects, will enable a forward outlook on infrastructure projects which will create jobs, improve ease of living, and provide equitable access to infrastructure for all, thereby making growth more inclusive.
Welcoming the move, CBRE (India, Middle East, South East Asia) CEO Anshuman Magazine said it is clear that the government is willing to do the needful and is ready to take the initiative by providing required funds.
"Infrastructure projects worth Rs 102 lakh crore for next five years under National Infrastructure Pipeline will provide opportunities to all the stakeholders engaged in areas such as urban development, renewable sector, railways, irrigation, mobility, education, health, water and digital and will pave the way for long term development in all other areas," he said.
(With inputs from PTI.)
