PM Gati Shakti Scheme
Goal:
- To make sure that infrastructure projects are carefully planned and carried out throughout the course of the next four years, with a focus on accelerating groundwork, cutting costs, and generating jobs.
- The National Infrastructure Pipeline, which was built in 2019 and cost Rs 110 lakh crore, would be paid for by the Gati Shakti plan.
- The programme aims to minimise turnaround times at ports and increase cargo handling capacity in addition to lowering logistical expenses to boost trade.
- It also has plans to construct two additional defence corridors, one in Tamil Nadu and the other in Uttar Pradesh, as well as 11 industrial corridors. Another goal is to make all towns 4G accessible. The network of gas pipelines will grow in length by 17,000 km.
- The expansion of more than 200 new airports, heliports, and water aerodromes as well as doubling the length of the national highway network to 2 lakh kilometres would aid the government in achieving the challenging goals it has set for the years 2024–2025.
Integrated Strategy:
- 16 Ministries with an interest in infrastructure are intended to be coordinated.
- Numerous enduring problems, including haphazard planning, a lack of standardisation, difficulties obtaining clearances, and the timely development and utilisation of infrastructure capacities, could be resolved with the help of this.
- Platform Digital Gati Shakti:It entails developing a uniform platform that would enable efficient real-time coordination amongst different ministries and departments during the planning and execution of infrastructure projects.
Expected Results:
- The method will assist in mapping both ongoing and impending connection operations.
- In terms of last mile connectivity, the connections between the various regions and industrial clusters of the nation would also be much obvious.
- A comprehensive and coordinated strategy for transport connection will greatly advance Make in India and incorporate a variety of transportation options.
- It will assist India in becoming the global commercial hub.
- It Is Important to Build an Integrated Infrastructure
- Because of the lack of coordination and sophisticated information interchange caused by departments thinking and acting in silos, there is a wide gap between macro planning and micro implementation.
- A study found that India spent more on logistics than other prosperous nations, at approximately 13 percent of GDP.
- India’s exports are significantly less competitive as a result of these high logistics expenses.
- It is well known that building first-rate infrastructure is a tried-and-true method for fostering a range of economic activity and substantial employment.
- An addition to the National Monetization Pipeline is also a goal.
- In order to create a clear framework for monetisation and provide potential investors with a ready list of assets to stimulate their interest in investments, the NMP has been made public.
Further Issues:
- Reduced Credit Offtake Despite the government’s “strong” banking sector reforms and the approximately Rs. 2.4 lakh crore in bad loan recovery made possible by the Insolvency and Bankruptcy Code, there are concerns about the trends of diminishing credit offtake.
- Banks grant credit to businesses in order to assist them in obtaining capital for upcoming initiatives by guaranteeing future profits and demonstrating a market.
- a lack of demand In the post-Covid-19 world, both investor demand and private demand are lacking.
- structural issues When compared to other countries, the pace of project implementation is extraordinarily slow because of problems with land acquisition and litigation.
- It is quite challenging to get licences for infrastructure projects in terms of land access and environmental approvals. Furthermore, continuous legal issues lengthen the wait.
- PM Gati Shakti is a positive development.
- However, it must also address the issues with macroeconomic stability and structural stability brought on by increased public spending.
- In order to assist this effort, a solid and trustworthy institutional and regulatory framework is essential.
