The Indian government has recently rolled out an ambitious initiative named the Gati Shakti scheme or National Master Plan. This multi-modal connectivity plan is designed to improve the coordination in planning and execution of infrastructure projects, and it aims at reducing logistics cost across the country.
Gati Shakti Scheme Objectives
The primary aim of the Gati Shakti scheme is to assure integrated planning and execution of infrastructure projects over the next four years. The focus is on accelerating work on the ground, reducing costs, and generating employment opportunities. This grand scheme will incorporate the Rs 110 lakh crore National Infrastructure Pipeline that was launched in 2019.
The scheme also intends to increase cargo handling capacity and minimise the turnaround time at ports for boosting trade. It outlines plans to establish 11 industrial corridors and two new defense corridors, one in Tamil Nadu and the other in Uttar Pradesh. Further, it aims to extend 4G connectivity to all villages and add 17,000 kms to the gas pipeline network.
2024-25 Goals and Integrated Approach
The Gati Shakti project will play a key role in achieving the government’s ambitious targets for 2024-25. These include expanding the national highway network to 2 lakh kms and creating over 200 new airports, heliports, and water aerodromes. The ambitious scheme intends to unite 16 infrastructure-related Ministries, aiming to resolve issues such as disjointed planning, lack of standardisation, clearance problems, and efficient creation and utilisation of infrastructure capacities.
Gati Shakti Digital Platform
The scheme involves creating a digital platform to ease the planning and implementation of infrastructure projects. The platform will enable real-time coordination between various ministries and departments and provide a common umbrella for all projects.
Expected Outcomes and Need for Integrated Infrastructure Development
The Gati Shakti scheme will assist in mapping existing and proposed connectivity projects. This will provide clarity on how different regions and industrial hubs in the country are interconnected, especially concerning last-mile connectivity.
This holistic strategy will strongly support the Make in India initiative and integrate various modes of transport. It’s expected to help India emerge as a global business capital.
Associated Challenges with the Scheme
Despite the potential benefits, the Gati Shakti scheme also faces some challenges. These include low credit off-take despite significant banking sector reforms, lack of private demand and investment in the post-COVID-19 scenario, and structural problems such as delays in land acquisition and litigation issues slowing project implementation.
The Way Forward
PM Gati Shakti scheme is undoubtedly a step towards the right direction for improving India’s infrastructure. However, to truly reap its benefits, it’s essential to address structural and macroeconomic stability concerns rising from high public expenditure. A stable and predictable regulatory and institutional framework is needed to underpin this initiative effectively.
