The Union Finance Ministry has taken a monumental step to accelerate India's infrastructure development. On Tuesday, it announced the second pipeline of the National Infrastructure Pipeline (NIP 2.0), comprising a staggering 852 projects to be developed under the public-private partnership (PPP) model. The combined investment for this ambitious three-year plan is estimated to exceed ₹17 trillion.
A Strategic Blueprint for Growth
This major announcement follows the commitment made in the Union Budget for FY26 to prepare a detailed, forward-looking project pipeline for PPPs. The ministry emphasized that this move provides early visibility to investors, developers, and stakeholders, enabling them to plan and make informed investment decisions well in advance. The projects span critical sectors including energy, transportation and logistics, social and commercial infrastructure, as well as water and sanitation.
Leading the charge is the Union Ministry of Road Transport and Highways (MoRTH), which is set to contribute 108 projects with an estimated cost of over ₹8.76 trillion. Other key ministries and their projected investments include the power sector with 46 projects worth ₹3.40 trillion, water resources with 29 projects costing ₹12,253 crore, and shipping and waterways with 22 projects valued at ₹37,644 crore.
Central Government Drives the Bulk of Investment
An analysis of the targeted ₹17 trillion investment under NIP 2.0 reveals that central government ministries and departments will account for the lion's share. ₹13 trillion of the investment is expected from central PPP projects, while the remaining ₹4 trillion is anticipated to come from projects at the state and Union Territory levels.
A significant portion of this private investment is expected to flow into roads and highways, particularly through projects awarded under the Build, Operate, and Transfer (BoT) model. Additionally, MoRTH plans to focus on constructing access-controlled highways to develop a high-speed golden quadrilateral of expressways.
Expanding the PPP Horizon Across Sectors
The pipeline signals a broadening of the PPP approach beyond traditional sectors. The railways, which has historically been slow in adopting the PPP model, is now poised to attract investment for high-speed network development, freight trains, and expanding manufacturing capabilities for semi high-speed trains like the Vande Bharat.
In the maritime sector, the next three years are expected to see increased PPP activity in building shipbuilding clusters and ship repair facilities. The government also plans to boost investment in creating new greenfield mega ports while modernizing existing ones.
NIP 2.0 succeeds the first National Infrastructure Pipeline launched in 2019, which aimed to attract investment in projects costing over ₹100 crore. According to ratings agency ICRA Ltd, as of March 2025, NIP 1.0 covered 13,000 projects with a total cost of ₹185 trillion, nearly half concentrated in the transport sector. However, the completion rate remains a challenge, with only 20% of projects finished by March 2024 and work ongoing on another 45%.
This massive infrastructure push aligns with India's broader goals of strengthening its economic foundation, reducing fossil fuel consumption, combating climate change, and providing housing for all. The government estimates that India needs to spend $4.51 trillion on infrastructure by 2030 to achieve its vision of becoming a $5 trillion economy and sustain growth thereafter.
