PM Gati Shakti: Potential and Challenges Ahead
Description
PM Gati Shakti: Potential and Challenges Ahead
• Prime minister Narendra Modi has announced the launch of the Gati Shakti Yojana, a Rs 100 lakh-crore project for developing ‘holistic infrastructure’ in India on the 75th independence day.
• Hereby, discussing the salient features, benefits, challenges, measures for improvement, etc.
ABOUT GATI SHAKTI YOJANA
• PM Gati Shakti is a digital platform that connects 16 ministries — including Roads and Highways, Railways, Shipping, Petroleum and Gas, Power, Telecom, Shipping, and Aviation — with a view to ensuring holistic planning and execution of infrastructure projects.
• It is driven by seven engines, namely, Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure.
• It will incorporate the infrastructure schemes of various Ministries and State Governments like Bharatmala, Sagarmala, inland waterways, dry/land ports, UDAN etc. Economic Zones like textile clusters, pharmaceutical clusters, defence corridors, electronic parks, industrial corridors, fishing clusters, agri zones will be covered to improve connectivity & make Indian businesses more competitive.
• It will also leverage technology extensively including spatial planning tools with ISRO (Indian Space Research Organisation) imagery developed by BiSAG-N (Bhaskaracharya National Institute for Space Applications and Geoinformatics).
WHY LAUNCHED?
• Infrastructure spending has a multiplier effect on the economy. Apart from the direct benefits such as employment generation, demand for raw materials for construction, etc., there would also be indirect benefits to the economy.
• Studies by the RBI and the National Institute of Public Finance and Policy have shown that for every rupee spent by the government in creating infrastructure, GDP gains worth Rs. 2.5- 3.5 accrue.
• For balanced regional development, it is important that multiple urban clusters sprout up across the country and are not concentrated in certain areas only. This is possible by a coordinated approach in infrastructure development.
However, there was lack of coordination between different Departments, for example, once a road was constructed, other agencies dug up the constructed road again for activities like laying of underground cables, gas pipelines etc. This not only caused great inconvenience but was also a wasteful expenditure.
Apart from this there was time-taking approval process, multiplicity of regulatory clearances, etc.
Hence to address this, efforts were made to increase coordination through PM Gati Shakti Scheme.
How it works?
• There is an Integrated Multimodal Network Planning Group (NPG) to execute Gati Shakti.
• NPG is entrusted with unified planning and integration of proposals as well as connectivity projects which are not part of the current master plan with an estimated cost of over Rs 500 crore
• The National Networking Group consists of experts or officials from all the stakeholder departments
• The Department of Promotion of Industry and Internal Trade is the nodal agency
• The group is responsible for sharing their specific Action Plans for 2020-21 to 2024-25 with each other for facilitating integration of networks, enhancing optimisation through modification/expansion/new network creation to avoid duplication of works for holistic development of any region as well as reducing logistics costs through micro-plan detailing.
Infrastructure Development Targets under Gati Shakti
• The plan includes 11 industrial corridors, achieving a Rs 1.7 lakh crore turnover in defence production and having 38 electronics manufacturing clusters and 109 pharma clusters by 2024-25
• For the Road Transport and Highways Ministry, the target is to have National Highways of 2 lakh kms, completion of four or six-lane national highways of 5,590 km along coastal areas and all state capitals in north-east to be connected with four-lane national highways or 2 two-lane national highways
• For the Railways, the target by 2024-25 is to handle cargo of 1,600 million tons from 1,210 million tons in 2020. It also has the target of decongesting 51 percent of the Railway network by completing additional lines and implementation of two Dedicated Freight Corridors (DFCs)
• The gas pipeline network in the country is aimed to be doubled to 34,500 km by 2024-25 by building an additional 17,000 km long trunk pipeline connecting major demand and supply centres for industries
• In power lines, the total transmission network by 2024-25 is targeted to be 4.52 lakh circuit km and the renewable energy capacity is expected to be increased to 225 GW from 87.7 GW presently.
BENEFITS
PM Gati Shakti will provide following benefits:
• Comprehensiveness:
It will include all the existing and planned initiatives of various Ministries and Departments with one centralized portal.
Each and every Department will now have visibility of each other's activities providing critical data while planning & execution of projects in a comprehensive manner.
• Prioritization:
Through this, different Departments will be able to prioritize their projects through cross-sectoral interactions.
• Optimization:
The National Master Plan will assist different ministries in planning for projects after identification of critical gaps.
For the transportation of the goods from one place to another, the plan will help in selecting the most optimum route in terms of time and cost.
• Synchronization:
Individual Ministries and Departments often work in silos. There is lack of coordination in planning and implementation of the project resulting in delays.
PM Gati Shakti will help in synchronizing the activities of each department, as well as of different layers of governance, in a holistic manner by ensuring coordination of work between them.
• Analytical:
The plan will provide the entire data at one place with GIS based spatial planning and analytical tools having 200+ layers, enabling better visibility to the executing agency.
• Dynamic:
All Ministries and Departments will now be able to visualize, review and monitor the progress of cross-sectoral projects, through the GIS platform, as the satellite imagery will give on-ground progress periodically and progress of the projects will be updated on a regular basis on the portal.
It will help in identifying the vital interventions for enhancing and updating the master plan.
• Improve Ease of Living:
The multi-modal connectivity will provide integrated and seamless connectivity for movement of people, goods and services from one mode of transport to another.
It will facilitate the last mile connectivity of infrastructure and also reduce travel time for people.
• Improve coordination with corporates:
PM GatiShakti will provide the public and business community information regarding the upcoming connectivity projects, other business hubs, industrial areas and surrounding environment.
This will enable the investors to plan their businesses at suitable locations leading to enhanced synergies.
It will create multiple employment opportunities and give a boost to the economy.
It will improve the global competitiveness of local products by cutting down the logistics costs and improving the supply chains, and also ensure proper linkages for local industry & consumers.
How Gati Shakti Plan can strengthen India’s economic ties with its neighbours?
The plan will generate positive effects to deepen India’s economic ties with Nepal, Bhutan, Bangladesh, Myanmar and Sri Lanka, as well as with Southeast Asia and the Indian Ocean region.
The reduction in India’s domestic logistics costs will bring immediate benefits Nepal, given that 98 per cent of Nepal’s total trade transits through India and about 65 per cent of Nepal’s trade is with India.
Under the South Asia Sub regional Economic Cooperation Programme, India’s investments in multimodal connectivity on the eastern coast will reconnect India with the Bay of Bengal and Southeast Asia through integrated rail, port and shipping systems.
India recently joined the Transports Internationaux Routiers (TIR) convention, which facilitates cross-border customs procedures, none of its neighbouring countries in the east has signed on to it.
CHALLENGES
While the scheme has the potential to bring significant benefits, there are also several challenges associated with its implementation, some of which include:
• Complex regulatory environment: India's logistics sector is highly regulated, with multiple agencies and laws governing different aspects of the industry. Harmonizing and integrating these regulations under the Gati Shakti scheme could be a challenging task.
• Fragmented logistics industry: India's logistics industry is highly fragmented, with a large number of small players. Integrating these players into a cohesive system under the Gati Shakti scheme could be challenging.
• Lack of skilled workforce: The logistics industry in India is often characterized by a lack of skilled workforce, especially in areas such as warehousing and transportation. Addressing this skill gap will be critical for the success of the Gati Shakti scheme.
• High implementation costs: The Gati Shakti scheme involves significant investments in technology, infrastructure, and human resources, which could be challenging for the government to bear, especially in the current economic environment.
• Cybersecurity risks: As the scheme relies heavily on technology, there is a risk of cybersecurity threats, including data breaches and hacks.
• Investments from States: With the pandemic and its associated challenges, the state governments don’t have enough finances to invest such large amounts. This will delay the implementation of the master plan.
• Land acquisition: Many development projects get delayed due to land acquisition issues. Further, these delays add up to the costs of many projects, making them a less efficient and costlier project for development. There are other issues such as litigation issues, alienation of local communities and the violation of environmental norms, etc.
MEASURES NEEDED FOR IMPROVEMENT
• Reduce procedures: The government should work to simplify and streamline regulations, removing redundancies and inconsistencies.
• Consolidate with industry: Encouraging industry consolidation and promoting collaboration between stakeholders could help to create a more cohesive and integrated system.
• Skill development: India's logistics industry faces a significant skill gap, particularly in areas such as warehousing and transportation. To address this, the government should invest in skill development programs and training initiatives to develop a skilled workforce.
• Invest in technology: The Gati Shakti scheme relies heavily on technology to integrate India's logistics sector. Investing in advanced technologies such as artificial intelligence, blockchain, and the Internet of Things can help to improve efficiency, transparency, and security in the logistics industry.
• Promote private sector participation: The private sector can play a critical role in the success of the Gati Shakti scheme. The government should work to create an enabling environment that encourages private sector participation in the logistics sector, including providing incentives for investment.
• Address cybersecurity risks: As the Gati Shakti scheme involves the use of technology, addressing cybersecurity risks is critical. The government should work to develop robust cybersecurity measures to protect against threats such as data breaches and hacks.
Overall, a concerted effort from the government, private sector, and other stakeholders is required to improve the Gati Shakti scheme and achieve its objectives.
