As part of the PM Gati Shakti master plan, Finance Minister Nirmala Sitharaman on Tuesday proposed 50-year, interest-free loans of Rs 1 lakh crore to the states to help them attract investments in financial year 2022-23.
These loans are over and above the normal borrowings allowed to the states, Sitharaman said in her budget speech.
The scope of these loans go beyond just Gati-Shakti, a digital platform to track infrastructure projects powered by seven engines: airports and ports, roads and railways, mass transport, waterways and logistics.
“This allocation will be used for PM Gati Shakti related and other productive capital investment of the states,” a government statement said.
The PM Gati Shakti Master plan, a pet project of Prime Minister Narendra Modi which found prominent mention in Sitharaman’s budget speech of 2022-23, involves holistic policymaking for the seven infrastructure sub-sectors, with one digital portal that can accessed by all stakeholders for real-time information.
“Data exchange between all modes of transport will be brought on a unified logistic platform designed for application programming interface (APIs). This will enable efficient movement of goods, reducing logistics cost and time, assisting just-in-time inventory management, and eliminating tedious documentation” Sitharaman said in her budget speech.
The minister described PM Gati Shakti as a transformative approach to economic development and sustainability.
“All seven (engines) will pull forward the economy in unison,” she added. These will be supported by energy transmission, Information Technology and social infrastructure, according to the finance minister.
Even though the budget speech itself didn’t mention a broad allocation towards PM Gati Shakti, it clubbed the outlay for making roads under the master plan.
Rs 20,000 crore to go towards expanding expressways
The finance minister said the PM Gati Shakti Master Plan for Expressways will be prepared in 2022-23 to facilitate faster movement of people and goods.
“The National Highways network will be expanded by 25,000 km in 2022-23 and Rs.20,000 crore will be mobilized through innovative ways of financing to complement the public resources” she added.
Four multimodal logistics parks
Contracts for implementation of multimodal logistics parks at four locations in a public-private partnership mode will be awarded in 2022-23, the finance minister said.
Innovative products for small and medium businesses in Railways
Railways will develop new products and efficient logistics services for small farmers and small and medium enterprises.
MoneyControl had reported in January that the budget was expected to announce ways to attract small cargo and medium- and small-scale businesses, and innovative container products the national transporter is considering for those businesses.
Railways will also be leading the integration of Postal and Railways networks to provide seamless solutions for movement of parcels.
MoneyControl had reported in December about how Indian Railways is planning to roll out an innovative solution in the cargo space by the third quarter of 2022, and post offices and postmen will be a large part of that service and shifting cargo to railways, Minister of Railways Ashwini Vaishnaw said at a recent forum.
More than any of his predecessors, Vaishnaw is uniquely positioned to deepen this relationship between Indian Railways and India Post in the cargo space. Besides being the minister of railways, he is also the minister of telecommunication, and as part of that portfolio, he heads the government’s postal network.
Sitharaman also said a One Station-One Product concept will be popularized to help local businesses and supply chains.
Sitharaman said 400 new-generation Vande Bharat Trains with better energy efficiency and passenger riding experience will be developed and manufactured during the next three years. She said 100 PM Gati Shakti Cargo Terminals for multimodal logistics facilities will be developed during the next three years.
Mass urban transport including connectivity to Railways
The finance minister said that innovative ways of financing and faster implementation of metro systems will be undertaken at scale.
“Multimodal connectivity between mass urban transport and railway stations will be facilitated on priority” she said.
She added that the design of metro systems, including civil structures, will be done keeping in mind Indian conditions and needs.
Eight ropeway projects in 2022-23
The finance minister said eight ropeway projects covering a length of 60 km will be awarded in the financial year 2022-23.
A National Ropeways Development Programme will be taken up in a public-private partnership mode, she added.
Largely meant for hilly terrain, these may also cover congested urban areas, where a conventional mass transit system is not feasible.
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