Date : 22/06/2023

Relevance : GS Paper 3 : Infrastructure - Investment

Main Points : National Master plan, Gati shakti Portal, Make in India, Connectivity

Context-

• The Government of India has launched the ambitious Gati Shakti scheme, also known as the National Master Plan for multi-modal connectivity.
• This comprehensive initiative aims to accelerate infrastructure development, reduce logistics costs, and attract private capital investments.
• Recently CII and the industry requested access to the PM Gati Shakti portal.

About the Gati Shakti Scheme:

• Aim: The Gati Shakti scheme aims to ensure integrated planning and execution of infrastructure projects over the next four years, with a focus on expediting work, reducing costs, and generating employment opportunities.
• Integration of National Infrastructure Pipeline: The scheme incorporates the National Infrastructure Pipeline, a project worth Rs 110 lakh crore, initiated in 2019, to ensure continuity and comprehensive planning.
• Objectives: The scheme targets reducing logistics costs, enhancing cargo handling capacity, improving turnaround time at ports, establishing industrial and defense corridors, extending 4G connectivity to all villages, and expanding the gas pipeline network.
• Integrated Approach: The scheme brings together 16 infrastructure-related ministries to address issues related to planning, standardization, clearances, and timely creation and utilization of infrastructure capacities.
• Gati Shakti Digital Platform: The scheme includes the development of a digital platform that facilitates real-time coordination and planning of infrastructure projects among various ministries and departments.

Expected Outcomes:

• Mapping of Connectivity Projects: The scheme aims to map existing and proposed connectivity projects, providing clarity on regional and industrial hub linkages, particularly for last mile connectivity.
• Holistic Transport Connectivity: By integrating different modes of transport, the scheme supports the "Make in India" initiative and aims to establish a comprehensive and efficient transport connectivity strategy.
• Enhanced Competitiveness: Reduction in logistical costs will improve India's export competitiveness in the global market, promoting economic growth and trade.
• Economic Growth and Employment: The development of quality infrastructure is expected to stimulate economic activities, foster sustainable development, and create employment opportunities on a large scale.

Industry's Request for Portal Access:

• The industry, represented by the Confederation of Indian Industry (CII), seeks access to the PM Gati Shakti portal's data, excluding sensitive information.
• This access would assist logistics firms in planning operations and enable fresh capital spending across allied sectors.
• Access to the portal's information would facilitate better planning and attract additional private capital investments, improving infrastructure development in logistics and related sectors.

Challenges to Address:

• Alongside the Gati Shakti scheme, addressing concerns related to declining credit offtake, lack of private demand, and structural issues, such as land acquisition delays and litigation, will be crucial for successful implementation.
• The initiative should be accompanied by a stable and predictable regulatory and institutional framework to ensure long-term success.

Conclusion:

The Gati Shakti scheme serves as a catalyst for infrastructure development and private investments in connectivity. By promoting integrated planning, improving logistics, and fostering public-private collaboration, the scheme aims to reduce costs, enhance competitiveness, and drive economic growth. Granting industry access to the PM Gati Shakti portal's non-sensitive data will further facilitate planning and attract much-needed private capital investments, strengthening India's infrastructure backbone.

Source : The Hindu