To achieve the target by the National Infrastructure Pipeline (NIP) in coming years, the Centre has proposed the following three steps in the Union Budget 2021-22. These include creation of institutional structures, a big thrust on monetizing assets, and enhancing the share of capital expenditure in Central and state budgets. NIP, launched in December 2019 with 6,835 projects, has now expanded to 7,400 projects and around 217 projects worth Rs 1.10 lakh crore under some key infrastructure ministries have been completed.
A sum of Rs 20,000 crore has been provisioned in the Union Budget to capitalise Development Financial Institution (DFI). Also, a Bill will be introduced to set up DFI which will act as a provider, enabler and catalyst for infrastructure financing. The ambition is to have a lending portfolio of at least Rs five lakh crore for this DFI in three years’ time. In order to enable Debt Financing of InVITs and REITs by foreign portfolio investors, suitable amendments will be done in the relevant legislations. The Union Finance Minister Sitharaman announced launch of a National Monetisation Pipeline of potential brownfield infrastructure assets.