Lending ‘Gati’ to India’s Infrastructure Dreams
The need for a holistically integrated infrastructure network has long been felt by India. Let’s take a real-life example. Often times, after a road is constructed, it is dug up all over again to lay cables, gas pipelines, etc. All of this leads to enormous wastage of resources. Would it not have been great to integrate all the entities related to building infrastructure in one Digital platform?
From the ramparts of Red Fort, on the eve of India’s 75th Independence Day, PM Narendra Modi announced the launch of ‘PM Gati Shakti Master Plan’, with an outlay of INR 100 Lakh Crore. The crux of this plan is about bringing together 16 infrastructure-related ministries through a coordinated mechanism, enabled by a digital platform. An “integrated planning and coordinated execution” by all those 16 ministries is at the heart of the scheme. There will be a consolidated snapshot of ongoing and upcoming projects, that each of the above ministries can access. Seamless coordination, minimal delays, better quality infrastructure – That’s what can be expected of this much-needed scheme!
Infrastructure has often been the wing on the back of nations which have transformed themselves. Examples abound in history.
Post the economic collapse, including the ‘Great Contraction’, in US from 1929 to 1933, President Roosevelt upon assuming Office in 1933 introduced the ‘New Deal’. Among a slew of reforms that it entailed, one was setting up the Public Works Administration (PWA), which included a holistic infrastructure upgrade covering roads, bridges, dams, airports, hospitals, etc. The result was restoring public confidence and creating new programs that addressed unemployment.
Similar were the benefits realized in South Korea between 1960 – 1990, that grew at an average rate of 10 per cent per annum, and China between 1980 – 2010. Both were driven by greater thrust on infrastructure development. Post WWII, Europe saw a need for resurgence on back of infrastructure recreational activities.
India is at a similar cusp of transformation now, aiming to improve its ‘competitive index’. Major requirements in this direction are to set up a network of multi-modal transport system for commuters, and seamless logistics to boost domestic transfer of goods, raw materials, as also exports. The first-order effect would be increased demand of labour, construction materials, etc. The second-order impact would be a ‘Multiplier effect’, which is typically 2.5 – 3.5X. What this means is, for every rupee spent by Government in creating infrastructure, GDP would gain worth Rs 2.5 – 3.5. Raising our Capital expenditure to GDP % would be critical towards realizing this.
Presently, around 64 per cent of freight in India is moved through roads. As diesel is the prime driver of road transport, any spike in oil prices would raise overall landed cost of items. A higher share of railway in modal transport is desirable hence, also because it is a more efficient method. The various economic zones, industrial parks, logistics hubs, etc suffer often times due to this lack of connectivity. The fragmented decision making across departments adds to the woes.
The principal features of Gati Shakti scheme will be as follows:
▪ This will be an umbrella scheme, subsuming the INR 110 lakh crore National Infrastructure Pipeline that was launched in 2019.
▪ It will undertake various infrastructural projects like Bharatmala, Sagarmala, Inland waterways, Land ports, UDAN, etc, under distinct ministries.
▪ The scheme aims to have 11 industrial corridors and 2 defence corridors – one in TN and one in UP. Extending 4G connectivity to all villages is another aim, while adding 17,000 Kms to the gas pipeline network is also being planned.
▪ It will take into consideration the upkeep of various ‘Economic Zones’ like textile clusters, industrial corridors, fishing cluster, electronic parks, defence corridors, and agricultural zones.
▪ Gati Shakti Digital Platform: It aims to create a common digital platform across 16 infrastructure related Ministries, through which better coordination and implementation can be effected. It will have 200 types of databases, in which physical facilities, district administration offices, rail, road, gas lines, health and police, along side water bodies, reserve parks, forests, will be mapped by GIS System.
In terms of institutional framework, the rolling out, implementation, monitoring, support mechanism will comprise of a 3-tier system: Empowered Group of Secretaries (EGOs), Network Planning Group (NPG), Technical Support Unit (TSU).
The ‘Gati Shakti’ scheme will strengthen local manufacturers across sectors, let freight and passengers move swiftly from one place to another, and become a push factor for our exports. If implemented right, it will be the much-needed booster for our nation’s infrastructure dreams.
When President Roosevelt had introduced the ‘New Deal’ for US, he had proclaimed: “Throughout the nation men and women, forgotten in the political philosophy of the Government, look to us here for guidance and for more equitable opportunity to share in the distribution of national wealth... I pledge myself to a new deal for the American people. This is more than a political campaign. It is a call to arms.” Indeed – PM Gati Shakti scheme may just be that – a revolutionary cornerstone to India’s infrastructure turnaround.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.
