Gati Shakti Could Cut Logistics Costs If It Can Convince All States to Come on Board
with him Gati Shakti National Master Plan Which he launched on October 13, Prime Minister Narendra Modi has expanded on the familiar topic that India’s slowing economic growth engine may gain new momentum through major infrastructure upgrades that will cut logistics costs for the industry. and will increase all-round efficiency. Essentially a tech-focused administrative initiative that promises a seamless integration of 16 ministries, including railways, roads and ports, through information technology, satellite mapping and data tools, the program seeks to appeal to the national imagination. an umbrella integrator 111 lakh crore projects under National Infrastructure Pipeline (NIP) for 2020-25. The importance given to the scheme of rail-road multimodal connectivity and the high share of freight traffic for the railways – also articulated by NITI Aayog – has several benefits. This includes reducing the cost of logistics to GDP, which was around 14% even when the NDA government came to power, to an aspirational 8%. There is also the challenge of reducing vehicular emissions from road freight growth to meet climate change commitments and to control input costs due to extraordinarily high taxes on diesel. Similar incentives to efficiency in port operations can increase cargo handling capacity and cut vessel turnaround times. Clearly, states have an important role to play in all of this, given that key pieces of the plan such as port linkages and the availability of land for highways, railways, industrial clusters and corridors depend on political consensus and active participation.
The observations in the Economic Survey for 2020-21 underscore the role of proactive Centre-State partnerships for infrastructure creation. The survey projects maximum investment in NIP sectors such as energy, roads, urban infrastructure and railways for FY 2021 and 22, with an investment of around Rs 8.5 lakh crore annually, apart from Rs 4.5 lakh crore per annum from the private sector. will be invested. Area. There’s a sharp gradient to cover here, as the effects of COVID-19 continue to be felt in terms of lost jobs, depressed wages and consumption, while planners pin their hopes on infrastructure projects for a New Deal outcome Which will boost demand for goods and commodities, in addition to attracting jobs and large investments. Significant delays in projects can often be traced to inconsistent and unfavorable land acquisition decisions that alienate communities or threaten to violate environmental integrity. Given the Centre’s priority for geographic information systems and remote sensing to identify potential industrial areas, policy makers would do well to reclaim land already subject to degradation and pollution, rather than set aside controversial new parcels. Convincing citizens that they stand to benefit from such grand plans through better social welfare, lower service costs and higher efficiency, and respecting federal boundaries when dealing with states are other imperatives.
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