The Prime Minister of India launched scheme on the eve of Independence Day
About Gati Shakti:
- The project is a source of employment opportunities for the youth in future.
- Gati Shakti will be a National Infrastructure Master Plan for our country which will lay the foundation of holistic Infrastructure.
- This scheme of more than 100 lakh crores rupees will result in new employment opportunities for lakhs of youth.
- The plan will help raise the global profile of local manufacturers and help them compete with their counterparts worldwide.
- It also raises possibilities of new future economic zones.
- PM Modi also announced the setting up of the National Hydrogen Mission. He said, “We have to make India a Global Hub for Green Hydrogen Production and Export in the ‘Amrit Kaal’. This will not only help India to make a new progress in the field of energy self-reliance but will also become a new inspiration for Clean Energy Transition all over the world. New opportunities from Green Growth to Green Job are opening up today for our start-ups & youth.
The National Infrastructure Pipeline (NIP)
- The National Infrastructure Pipeline (NIP) is a group of social and economic infrastructure projects slated to be established over a period of five years with an initial sanctioned amount of ₹102 lakh crore.
- The NIP was first announced in 2019 during the Independence Day speech by Prime Minister.
What is the National Infrastructure Pipeline?
- The NIP is an initiative that will provide world-class infrastructures across the country in order to improve the overall quality of life of for all citizens. The initiative will improve project preparations and attract both domestic and foreign direct investments for the Indian economy.
- The NIP will fulfil all the crucial factors that will help India in achieving its target in becoming a $5 trillion economy by the financial year 2025. It will cover both economic and social infrastructure projects as well
Why is the National Infrastructure Pipeline required?
- The key to any successful economy is a robust infrastructure with an equally strong supply chain. This holds true for India as well with its ambition to become a $ 5 trillion economy by 2025. Thus a key up-gradation of the existing infrastructure will be the key in raising India’s competitiveness to meet its target. Government initiatives such as the Make in India programme are dependent on such reforms.
- In addition, the creation of new infrastructure will boost employment and generate income thus improving the overall competitiveness of the economy. This is where the National Infrastructure Pipeline comes in.
Report by Task force:
The task force headed by Atanu Chakraborty on National Infrastructure Pipeline (NIP), in May 2020, submitted its final report to the Finance Minister.
Important recommendations and observations made:
- Investment needed: ₹111 lakh crore over the next five years (2020-2025) to build infrastructure projects and drive economic growth.
- Energy, roads, railways and urban projects are estimated to account for the bulk of projects (around 70%).
- The centre (39 percent) and state (40 percent) are expected to have an almost equal sharein implementing the projects, while the private sector has 21 percent share.
- Aggressive push towards asset sales.
- Monetisation of infrastructure assets.
- Setting up of development finance institutions.
- Strengthening the municipal bond market.
The task force has recommended setting up of the following three committees:
- Committee to monitor NIP progress and eliminate delays
- Steering Committee at each Infrastructure ministry level to follow up on the implementation process
- Steering Committee in DEA for raising financial resources for the NIP.
Source: Indian Express