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Indian Economy - Understanding the basics of Indian economic system

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20-Oct-21

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Gati Shakti must become the starting point for revamp of governance system

A central monitoring group will operate from the Department for Promotion of Industry and Internal Trade. In case issues arise in the execution of projects, a Group of Ministers (GoM) will be empowered to sort them out.
In another push for the infrastructure sector in India, the Narendra Modi-led government has come out with Rs 100 lakh crore Gati Shakti master plan. The plan was first announced from the ramparts of the Red Fort on August 15. After the announcement of national infrastructure pipeline, and the national monetisation pipeline, this is the third big step and a long impending reform in the direction of infrastructure development in India.
Gati Shakti is still in the nature of an ad hoc mechanism. The Government of India (Allocation of Business) Rules, 1961, and as amended up to January 2017, still form the basic governing structure. These rules reflect the traditional stovepipe approach. To enable cross-sectoral approaches, a radically different Allocation of Business Rules will be necessary.
About the Scheme
Aim: To ensure integrated planning and implementation of infrastructure projects in the next four years, with focus on expediting works on the ground, saving costs and creating jobs.
The Gati Shakti scheme will subsume the Rs 110 lakh crore National Infrastructure Pipeline that was launched in 2019.
Besides cutting logistics costs, the scheme is also aimed at increasing cargo handling capacity and reducing the turnaround time at ports to boost trade.
It also aims to have 11 industrial corridors and two new defence corridors - one in Tamil Nadu and other in Uttar Pradesh. Extending 4G connectivity to all villages is another aim. Adding 17,000 kms to the gas pipeline network is being planned.
It will help in fulfilling the ambitious targets set by the government for 2024-25, including expanding the length of the national highway network to 2 lakh kms, creation of more than 200 new airports, heliports and water aerodromes.

By: Neeraj Chauhan

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