Infrastructure Current Affairs - 2020

National Land Management Corporation recommended by National Infrastructure Pipeline Task Force

The Task Force on National Infrastructure Pipeline recently submitted its report to the Finance Minister Smt Nirmala Sitaraman. Under the report, the task force has recommended to set up National Land Management Corporation.

Highlights

The National Land Management Corporation will help to monetize state-owned surplus lands in a systematic way. The Task Force recommends to set up the corporation under Companies Act. The Corporation will also manage the lands that are owned by the Government of India.

Role of the corporation

The following were recommended by the task force

  • To hire a technical team to operate under the corporation. The team will be market-linked.
  • A Chief Executive Officer shall be appointed to lead the corporation
  • The Corporation will raise capital from the equity market
  • The corporation will work with several government departments including Defence Ministry and Railways.
  • The Corporation is to develop model concession agreements.

Background

The Government of India is to bring about 100 lakh crore investment in the infrastructure sector in the next five years. Therefore, it is important to bring about new monitoring agencies as that of the National Land Management Corporation to make sure there is enough availability of land to make the investment fruitful.

Task force on National Infrastructure Pipeline submits its report

On April 29, 2020, the task force on National Infrastructure Pipeline has submitted its final report to Finance Minister Nirmala Sitaraman. The report has been prepared for the year 2019-25.

Highlights

The summary of the report prepared by the task force on National Infrastructure Pipeline had already been released in December 2019. The Finance Minister in her Union Budget Speech 2019-20 had announced Rs 100 lakhs crore for the National Infrastructure Pipeline.

The Task Force had undertaken bottom to top approach to prepare the report. the report has provided a detailed split up for the capital expenditure of Rs 111 lakh crore. According to the report, projects of Rs 33 lakh crore are at conceptual stage. Also, the report suggests the funds to be allocated as 24% to energy sector, roads 18%, railways 12% and urban 17%.

Recommendations

The following recommendations were made by the task force

  • A Committee to be set up to monitor NIP progress. This will help to eliminate delays
  • A Steering Committee be set up at ministerial level to follow the implementation
  • A Steering Committee be set up to raise financial resources for NIP.

National Infrastructure Pipeline

The National Infrastructure Pipeline is the first of its kind. It aims to improve quality life of the citizens in the country. The project will aim to attract investments. It has set a target of making India a 5 trillion USD economy by 2025.

Functions of the Task Force

The Task Force was constituted to identify financially economical and feasible infrastructure. It was tasked to estimate the annual infrastructure investment and capital costs. Also, the task force was employed to monitor projects in order to minimize costs.

Infrastructure Vision 2025

The GoI has framed the Infrastructure Vision 2025. The main aspirations of the vision are as follows

  • To provide affordable and clean energy
  • To provide 100% digital coverage to all
  • To provide world class quality education.
  • To provide housing and water supply
  • To double farmers’ income by 2022