{"id":56345,"date":"2020-03-02T11:00:02","date_gmt":"2020-03-02T05:30:02","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=56345"},"modified":"2020-03-02T11:00:04","modified_gmt":"2020-03-02T05:30:04","slug":"answered-what-are-various-bottlenecks-to-infrastructure-creation-in-india-discuss-the-significance-of-the-national-infrastructure-pipeline-nip-for-infrastructure-creation","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-what-are-various-bottlenecks-to-infrastructure-creation-in-india-discuss-the-significance-of-the-national-infrastructure-pipeline-nip-for-infrastructure-creation\/","title":{"rendered":"[Answered] What are various bottlenecks to infrastructure creation in India? Discuss the significance of the National Infrastructure Pipeline (NIP) for infrastructure creation."},"content":{"rendered":"\n
\n Demand of the question<\/strong>\n Introduction.\n <\/strong>Contextual introduction.\n Body.\n <\/strong>Discuss various bottlenecks to infrastructure\n creation in India. Mention significance of National Infrastructure Pipeline\n (NIP) for infrastructure creation.\n Conclusion.\n <\/strong>Way forward.\n <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Economic development of any country, along\nwith other factors, depends on the infrastructure development. India is aiming\nto be a $5 trillion economy by 2025 which needs spending of about $1.4 trillion\n(Rs. 100 lakh crore) over five years on infrastructure. India can increase\neconomic growth to full potential, provided it improves the infrastructure\nfacilities, which are at present not sufficient to meet the growing demand of\nthe economy. Failure to improve the infrastructure in the country has\ncertainly, slow down India\u2019s growth process. There is a wide gap in railways,\nroads, energy infrastructure that hinders India\u2019s growth.<\/p>\n\n\n\n

Various\nbottlenecks to infrastructure creation in India:<\/strong><\/p>\n\n\n\n

  1. Financing:<\/strong> The infrastructure projects are highly capital\nintensive and funding has\nbeen one of the major impediments in achieving the infrastructure goals. Due\nto rise in NPA banks are not giving loans to private firms easily.<\/li>
  2. Land Acquisition:<\/strong> Land acquisition has been the single largest\nroadblock for the development of infrastructure. Several projects have been\nstalled or delayed due to land acquisition issues. One primary reason has been\nresistance from farmers or local communities whose land is being acquired.\nThere was generally a huge difference between the price offered by the agency\nthan the prevailing market value, which resulted in major disputes and\nlitigation.<\/li>
  3. Delay in regulatory clearance:<\/strong> Most of the infrastructure projects in\nIndia suffer from delays in completion. This is mainly due to an inadequate\nregulatory framework and inefficiency in the approval process. Infrastructure\nprojects require multiple sequential clearances at various levels of\ngovernment. <\/li>
  4. Complex Environmental clearance<\/strong>: Environmental safeguards and guidelines are\nevolving, which are complex in nature. Clearly, better governance will be a big\nhelp in mitigating long delays in infrastructure projects.<\/li>
  5. Capacity of private players: <\/strong>Infrastructure projects in India are becoming\nlarger in size and complexity and such projects require financial patronage and\nadditional project management skills which most medium-to-small Indian\ncompanies currently lack.<\/li><\/ol>\n\n\n\n

    Significance\nof National Infrastructure Pipeline (NIP) for infrastructure creation:<\/strong><\/p>\n\n\n\n

    1. $5 trillion goal:<\/strong> India\u2019s growth potential has not been achieved mainly\ndue to poor infrastructure in various sectors. The\nNational Infrastructure Pipeline would help in\nimproving the infrastructure and realising the growth potential. To achieve the\nGDP of $5 trillion by 2024-25, the National\nInfrastructure Pipeline is important.<\/li>
    2. Positive sentiment: <\/strong>India can\u2019t achieve high growth without\ninvestment. NIP will build investor confidence as identified projects are\nlikely to be better prepared, exposures less likely to suffer stress given\nactive project monitoring, thereby less likelihood of NPAs.<\/li>
    3. Fiscal space: <\/strong>Well-developed infrastructure enhances\nthe level of economic activity, creates additional\nfiscal space by improving the revenue base of\nthe government, and ensures quality of expenditure focused on productive areas.<\/li>
    4. Better<\/strong> Projects:<\/strong> The National Infrastructure Pipeline will\nensure that infrastructure projects are adequately prepared and launched. It\nwill provide a better view of project supply,\nprovides time to be better prepared for project bidding, reduces aggressive\nbids in project delivery, and ensures enhanced\naccess to sources of finance as a result of increased investor confidence.<\/li>
    5. Rural infrastructure: <\/strong>It will strengthen agricultural and rural\ninfrastructure. Irrigation and rural infrastructure projects would account\nfor 7.7 lakh crore each.<\/li>
    6. Connectivity: <\/strong>It will further increase the connectivity in India,\nespecially in rural areas. Road projects will account for Rs. 19.63 lakh crore\nwhile another Rs. 13.68 lakh crore would be for railway projects.<\/li><\/ol>\n\n\n\n

      The development of India’s infrastructure\npresents a huge task as well as a huge opportunity. The key issues that\nneed to be addressed for a major step-up in infrastructure development. The\nNational Infrastructure Pipeline is an ambitious plan that would include\nGreenfield and brownfield projects costing above Rs 100 crore each. It will\nalso enable robust marketing of the pipeline of projects requiring private\ninvestment through the India Investment Grid (IIG), National Investment &\nInfrastructure Fund (NIIF), etc.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Demand of the question Introduction. Contextual introduction. Body. Discuss various bottlenecks to infrastructure creation in India. Mention significance of National Infrastructure Pipeline (NIP) for infrastructure creation. Conclusion. Way forward. Economic development of any country, along with other factors, depends on the infrastructure development. India is aiming to be a $5 trillion economy by 2025 which… Continue reading [Answered] What are various bottlenecks to infrastructure creation in India? Discuss the significance of the National Infrastructure Pipeline (NIP) for infrastructure creation.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-56345","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/56345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=56345"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/56345\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=56345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}