NITI Aayog proposes 9.23% social discount rate for projects
In short
NITI Aayog has proposed a 9.23% social discount rate for project appraisal up to 30 years. It also suggests different rates for projects lasting longer than 30 years.
This could change how the government judges big projects in infrastructure and energy. The final rates for longer projects are not stated in the available reporting.
What the reporting says
NITI Aayog’s working paper proposes raising the social discount rate to 9.23% for project appraisal up to 30 years. The reported aim is to reshape how economic viability is judged for public investment projects, including long-term infrastructure and energy work. The paper also suggests different rates for projects extending beyond 30 years, but the available reporting does not give those rates.
Why it matters
NITI Aayog’s working paper proposes a higher social discount rate of 9.23% for appraising projects up to 30 years, with separate rates for even longer projects. This matters for ministries and public investment plans in infrastructure and energy because it can change whether projects look economically viable. The reporting does not state whether the proposal will be adopted or how the longer-term rates compare.