Budget 2022: With 'holistic infrastructure' in focus, PM Gati Shakti Master Plan gets major boost

New Delhi, Feb 1: Finance Minister Nirmala Sitharaman in her fourth budget address on Tuesday gave out details on PM Gati Shakti Master plan which will be driven by seven engines for growth and transformation. She announced that the government will expand the National Highway network by 25,000 kms in 2022-23 under the master plan. The master plan primarily focuses on developing ‘holistic infrastructure’, with inclusive development, productivity enhancement, energy transmission, climate action and financing of investment.

 

 

 

As part of the PM Gati Shakti master plan, Finance Minister Nirmala Sitharaman also 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. However, the scope of these loans go beyond just Gati-Shakti. “This allocation will be used for PM Gati Shakti related and other productive capital investment of the states,” the Ministry of Finance said.

 

Gati Shakti is a digital platform to track infrastructure projects powered by seven engines: airports and ports, roads and railways, mass transport, waterways and logistics. “All seven (engines) will pull forward the economy in unison,” she added.

 

 

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.

 

 

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.

 

 

Finance Minister said Railways will develop new products and efficient logistics services for small farmers and Small and Medium Enterprises, besides taking the lead in integration of Postal and Railways networks to provide seamless solutions for movement of parcels. She said ‘One Station-One Product’ concept will be popularized to help local businesses & supply chains.

 

 

 

As a part of Atmanirbhar Bharat, 2,000 km of network will be brought under Kavach, the indigenous world-class technology for safety and capacity augmentation in 2022-23.Smt Sitharaman said four hundred 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 GatiShakti Cargo Terminals for multimodal logistics facilities will be developed during the next three years.

 

 

The finance minister said eight ropeway projects covering a length of 60 km will be awarded in the financial year 2022-23. She said as a preferred ecologically sustainable alternative to conventional roads in difficult hilly areas, National Ropeways Development Programme will be taken up on PPP mode. The aim is to improve connectivity and convenience for commuters, besides promoting tourism.

 

 

Finance Minister said innovative ways of financing and faster implementation will be encouraged for building metro systems of appropriate type at scale. Multimodal connectivity between mass urban transport and railway stations will be facilitated on priority. She said design of metro systems, including civil structures, will be re-oriented and standardized for Indian conditions and needs.

 

 

Finance Minister said with technical support from the Capacity Building Commission, central ministries, state governments, and their infra-agencies will have their skills upgraded. This will ramp up capacity in planning, design, financing (including innovative ways), and implementation management of the PM GatiShakti infrastructure projects.

 

For 2022-23, Finance Minister proposed allocation of Rs. 1 lakh crore to assist the states in catalysing overall investments in the economy. These fifty-year interest free loans are over and above the normal borrowings allowed to the states.

 

This allocation will be used for PM GatiShakti related and other productive capital investment of the states. It will also include components for:

• Supplemental funding for priority segments of PM Gram Sadak Yojana, including support for the states’ share
  
  
• Digitisation of the economy, including digital payments and completion of OFC network
  
  
• Reforms related to building byelaws, town planning schemes, transit-oriented development, and transferable development rights.