25,000km highways to be built under fresh connectivity push
GatiShakti national master plan is largely a platform to track planning, execution of infra projects
NEW DELHI: The government’s new connectivity push under the GatiShakti National Masterplan will set out to build 25,000km more of national highways, 100 new cargo terminals, four logistics parks, eight ropeway projects, and help start 400 new Vande Bharat trains over the coming years, Union finance minister Nirmala Sitharaman said on Tuesday.
The announcement outlines the scope of a massive connectivity expansion the government has envisioned, announced broadly by Prime Minister Narendra Modi first on October 13.
The GatiShakti National Masterplan is largely a platform to track planning and execution of infrastructure projects across over a dozen ministries for projects that aim to serve connectivity and logistics requirements of MSMEs, small farmers and the general public.
Sitharaman described it as crucial to propelling the country’s economic growth in the future.
“PM GatiShakti is a transformative approach for economic growth and sustainable development. The approach is driven by seven engines, namely, roads, railways, airports, ports, mass transport, waterways, and logistics infrastructure,” she said while delivering her Budget speech in Parliament.
“All seven engines will pull forward the economy in unison. These engines are supported by the complementary roles of energy transmission, IT communication,
bulk water and sewerage, and social infrastructure. The approach is powered by Clean Energy and Sabka Prayas – the efforts of the Central government, the state governments, and the private sector together – leading to huge job and entrepreneurial opportunities for all, especially the youth,” he added.
In addition, the finance minister also proposed allocation of a 50-year interest-free loan of ₹1 lakh crore to states to assist them in catalysing overall investments in the economy in financial year 2022-23.
She said these loans, which will be over and above the normal borrowings allowed to the states, will be allowed to be used for other productive capital investments as well. The loan amount can also be used for the PM Gram Sadak Yojana by the
states, the allocation for which has been enhanced from ₹14,000 crore to ₹19, 000 crore in the new fiscal (2022-23).
Launched on October 13 last year, the PM GatiShakti National Master Plan for multimodal connectivity will help coordinate between 16 Union ministries. The idea is to create synergy between infrastructure and logistics, both of people and goods, and location of projects and bring down the cost for the same.
Pradeep Multani, president, PHD Chamber of Commerce and Industry said the announcements made under the PM GatiShakti plan signifies that a major point of focus for the government in 2022-23 is going to be infrastructure development.
While the 25,000 kms of national highways will be built by mobilising ₹20,000 crore, the budget also proposed to provide multimodal connectivity between mass urban transport and railway stations on priority.
It also proposed to develop new products and efficient logistics services for small farmers and small to medium enterprises, besides integrating postal and railway networks to provide seamless solutions for movement of parcels.
“One Station-One Product’ concept will be popularised to help local businesses and supply chains. As a part of Atmanirbhar Bharat, 2,000 km of network will be brought under Kavach, the indigenous worldclass technology for safety and capacity augmentation in 2022-23. Also, 400 new-generation Vande Bharat trains with better energy efficiency and passenger riding experience will be developed and manufactured during the next three years. Besides, 100 PM GatiShakti Cargo Terminals for multimodal logistics facilities will be developed during the next three years,” the finance ministry later said in a statement.
Companies in the logistics sector welcomed the move. Lancy Barboza, MD, Flomic Global Logistics Limited, said the government’s thrust on capex, strengthening the infrastructure, and policies to support the survival and growth of MSMEs, especially those in the logistics and warehousing sector, have been some of the key focus areas of the Budget 2022-23. “Push on infrastructure via PM GatiShakti will provide the much-needed push to infrastructure development. The data exchange proposed under GatiShakti amongst all mode operators under the Unified Logistics Interface Platform will enable efficient movement of goods through different modes. It will reduce logistics cost, thus making businesses more efficient for us,” he said.
KK Kapila, president emeritus, International Road Federation (IRF), said there was a dire need to give impetus to the infrastructure sector in view of its capital-intensive nature and long gestation period for infrastructure projects.
“Hence, augmented budgetary allocation, would ensure time-bound creation of worldclass infrastructure and propel India’s overall development. Investment in the infrastructure and mobility sector has a cascading impact on all sectors such as banking and financial sector, logistics, power sector. Infrastructure sector also aids in employment generation and socio-economic development of the country. GatiShakti will give a boost to the logistics sector and overall manufacturing sector by reducing transportation costs,” he said.