Asset monetisation and recycling in India’s power sector

Abstract

Infrastructure investment is crucial for a country’s rapid and inclusive socioeconomic development. Without a robust and widespread infrastructure network, India may struggle to compete globally and risk falling behind in projected growth forecasts. In December 2019, the Indian government introduced the National Infrastructure Pipeline (NIP), marking the first time the country established a comprehensive vision for infrastructure development. This vision aims to address future needs and bridge the gaps in current infrastructure, ensuring that India is well-positioned for growth in the coming decades (NITI Aayog, 2021).

The National Infrastructure Pipeline outlines a proposed investment of Rs. 111 lakh crores over five years, from 2020 to 2025, to develop essential infrastructure. The government plans to allocate approximately Rs. 22 lakh crore annually for this purpose, representing a significant increase—about 2.5 times higher—compared to previous infrastructure expenditure levels. This ambitious plan underscores the importance of infrastructure investment in realizing India's potential and achieving sustainable economic growth.