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Infrastructure gap: Gati Shakti opens doors to private sector

Gati Shakti, infrastructure

With private sector involvement on the horizon, the Gati Shakti programme seeks to streamline project execution and elevate India’s competitiveness.

The government plans to onboard the private sector for its ambitious PM Gati Shakti programme by allowing limited sharing of the Gati Shakti National Masterplan data. A government panel is soon expected to decide on this initiative, which, if approved, could greatly enhance the programme’s scope. As Gati Shakti approaches its third anniversary on October 13, the government hopes that private sector participation will optimise planning and reduce costs.

Most government departments and ministries have endorsed this proposal, making an approval likely. Currently, access to the digital portal, which is crucial for the planning and implementation of infrastructure connectivity projects, is restricted to state and central government entities.

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Accelerating infrastructure development 

Involving the private sector is expected to expedite the implementation of Gati Shakti. The masterplan portal contains comprehensive data on the country’s social and economic infrastructure. The scheme, which aims to improve connectivity, boost Indian businesses’ competitiveness, attract foreign investment, and stimulate economic growth, will likely benefit from private sector expertise.

Private players are particularly critical for executing infrastructure projects, and the move to open the portal to them could transform India’s infrastructure ecosystem. By granting access to non-sensitive data, the government can foster a collaborative environment that promotes transparency and accelerates project implementation.

A public-private partnership (PPP) model could bring additional resources, specialised skills, and innovative approaches, speeding up infrastructure development. However, the government is currently working to identify and segregate sensitive data to enable the safe sharing of other information with private entities.

What is Gati Shakti programme 

Prime Minister Narendra Modi announced the PM Gati Shakti Master Plan, a Rs 100 lakh crore initiative for building holistic infrastructure, on India’s 75th Independence Day. Positioned as a source of future employment opportunities, the plan is intended to elevate the global profile of Indian manufacturers and help them compete internationally. It also opens the door to new economic zones in the future.

Gati Shakti is a national master plan for multi-modal connectivity that integrates various infrastructure projects under a unified platform. By doing so, it aims to streamline planning and execution, enhancing connectivity and lowering logistics costs. Key economic zones, including agricultural, industrial, and technological hubs, are expected to benefit. The scheme will consolidate numerous infrastructure initiatives, such as Bharatmala, Sagarmala, UDAN, inland waterways, and dry ports, while coordinating efforts across 16 central ministries, including railways, roads, petroleum, power, telecom, shipping, and aviation.

India’s infrastructure deficit 

India’s infrastructure lags behind many Asian countries, particularly in utilities. The Global Competitiveness Report ranked India 70th globally in infrastructure, behind not only China but also Malaysia and South Korea. Utility infrastructure in particular is an area of concern, with India ranking 103rd—significantly below countries like Indonesia, Thailand, and Vietnam.

Investing in quality infrastructure is crucial for economic growth, alongside policy reforms and ease of doing business. Infrastructure investment reduces trade and transaction costs while improving productivity. Although there have been several initiatives, including increased budget allocations and policy reforms to attract private investment, the sector still faces a widening supply-demand gap, insufficient investment, an increasing reliance on the private sector, and an underdeveloped financial sector.

Gati Shakti is expected to address these challenges and propel India toward its vision of a $5 trillion economy. Infrastructure bottlenecks have hindered India’s manufacturing growth, and the scheme could reverse this trend. Public capital expenditure is essential to stimulate the economy, particularly as private investment in infrastructure remains limited.

Enhancing synergy, reducing delays 

One of the main reasons for delays in India’s infrastructure projects is the lack of coordination among various sectors, ministries, and departments. This results in cost overruns, time delays, and underutilisation of resources. Gati Shakti’s focus on integrating all stakeholders under a single framework with a shared vision is expected to streamline project timelines and improve resource utilisation.

This isn’t the first time the government has sought private sector participation in the scheme. In 2022, PM Modi called for private sector collaboration in infrastructure development, citing examples from developed countries. Since its inception, the government has envisioned a PPP model across the stages of planning, development, and utilisation in infrastructure.

To date, 208 projects worth Rs 15.39 lakh crore have been approved through the Network Planning Group under the Gati Shakti National Master Plan. Additionally, 156 gaps have been identified for optimisation among government departments, with improvements particularly in last-mile connectivity for key sectors such as coal, steel, fertiliser, and food distribution.

The onboarding of the private sector could mark a pivotal moment for Gati Shakti and the future of India’s infrastructure. By combining public and private strengths, the government aims to create a resilient, high-quality infrastructure network that positions India as a global economic powerhouse.

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