How Govt. Will Uplift Infrastructure Sector And PSUs through Task Force
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The government has constituted an Inter-Ministerial Task Force headed by Department of Economic Affairs (DEA) to compose a plan for building infrastructure worth Rupees 100 Lakh Crore. The whole constituted plan would include Brownfield and Greenfield projects costing above Rupees 100 Lakh Crore. The Task force includes secretaries from various ministries, several senior officials and CEO, Niti Aayog.
Ministerial framework for the task force
Formed Task force would identify the infrastructure projects which would be technically feasible and financially viable and can be initiated in 2019-20. It is also asked to line up the projects that can be included in the pipeline for the remaining years between 2021-25 fiscal years.
Indian government has set up a target of achieving GDP of 5 trillion by 2025. To accomplish it, India needs to spend around Rupees 100 Lakh Crore. This budget is planned to spend for infrastructure from the fiscal year 2019-20 to 2021-25.
Finance Ministry mentioned that the combined plan with its reports will be submitted on October 31, 2019 and reports related to the indicative pipeline will be submitted by the year end 2019. Mentioning about the massive investment of Rupees 100 Lakh Crore, PM modi said in his independence speech that the amount will be invested in the infrastructure sector over the next five years to augment the sector and the country’s economy. He involved social and economic infrastructure projects in the budget.
Task force formed has been asked to provide an estimate of the annual expenditure/capital costs related to the project. It was also asked to guide ministries to get an idea about exact finance sources.
According to the finance ministry, each department involved in the task would be responsible for monitoring the projects to ensure the timely execution of the targets and within cost implementation.
In the past years, Government has been spending massively on roads, urban infrastructure and irrigation, railways and water, which according to the experts acts as a multiplier in the economy.
“Availability of quality infrastructure is a pre-requisite to achieve broad-based and inclusive growth on a sustainable basis. Investment in infrastructure is also necessary for sustaining the high growth rate of India. To achieve the GDP of $5 trillion by 2024-25, India needs to spend about $1.4 trillion (Rs. 100 Lakh Crore) over these years on infrastructure. ," Finance Ministry said in its statement.