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Industry and Infrastructure 289

is expected to attract more PPP projects and facilitate private investment in social sectors such
as health, education, waste water, solid waste management, water supply etc.

8.39 In order to achieve the GDP of $5 trillion by 2024-25, India needs to spend about $1.4 trillion
over these years on infrastructure. During FYs 2008-17, India invested about US$1.1 trillion
on infrastructure. However, the challenge is to step up infrastructure investment substantially.
Keeping this objective in view, National Infrastructure Pipeline (NIP) was launched with
projected infrastructure investment of around Rs. 111 lakh crore (US$ 1.5 trillions) during FY
2020-2025 to provide world-class infrastructure across the country, and improve the quality
of life for all citizens. It also envisages to improve project preparation and attract investment,
both domestic and foreign in infrastructure. NIP was launched with 6,835 projects, which has
expanded to over 9,000 projects covering 34 infrastructure sub-sectors. During the fiscals 2020
to 2025, sectors such as energy (24percent), roads (19percent), urban (16percent), and railways
(13percent) amount to around 70percent of the projected capital expenditure in infrastructure in
India. Sector wise break-up of the pipeline for the period 2019-20 to 2024-25is given in figure
23. NIP has involved all the stakeholders for a coordinated approach to infrastructure creation
in India to boost short-term as well as the potential GDP growth.

Figure 23: Industry wise breakup of pipeline

25.00
20.00
in Rs lakh crore 15.00

10.00
5.00

0.00
Rural Infrastructure Social Infrastructure Telecommunications Industrial Infrastructure Agriculture and Food Processing Infrastructure
Energy Roads Urban Railways Irrigation Airports Ports

Source: Survey calculations based on data from the Report of the Task Force on National
Infrastructure Pipeline for 2019-2025
National Monetisation Pipeline (NMP)

8.40 NITI Aayog has developed the ‘National Monetisation Pipeline (NMP Volumes 1 & 2)’
in consultation with infrastructure line ministries. Asset monetisation, entails a limited period
license/ lease of an asset, owned by the government or a public authority, to a private sector
entity for an upfront or periodic consideration. The private sector entity is expected to operate
and maintain the asset based on the terms of the contract/concession, generating returns through
higher operating efficiencies and enhanced user experience. Funds, so received by the public
authority, are reinvested in new infrastructure, or deployed for other public purposes. Such
contracts include provision for transfer of asset back to the authority at the end of the period.