FEBRUARY 2, 2022

UNION BUDGET 2022-23

GATI SHAKTI

RAJAT SAXENA(FYBBA) & HIRANYA RATHORE(FYBBA)

GSFC UNIVERSITY
Overview
Finance Minister Nirmala Sitharaman on Tuesday presented a growth-
oriented Budget which focused on 4 pillars – productivity, climate
action, financing investments and PM Gati Shakti plan. The Budget
stepped up the capital expenditure sharply by 35.4 per cent to Rs 7.50
lakh crore to attract more private investment and attract growth. A
50-year interest-free loans are over and above the normal borrowings
allowed to states. This money will be used for PM Gati Shakti-related
and other productive capital investments of states.

What is Gati Shakti Scheme?

PM Gati Shakti National Master Plan for Multi-Modal Connectivity, launched in
October 2021, is an initiative aimed at coordinated planning and execution of
infrastructure projects. The objective is to bring down logistics costs. It is a
digital platform that will bring 16 Ministries including Railways and Roadways
together.
This multi-modal connectivity will provide integrated and seamless connectivity
for movement of people, goods and services from one mode of transport to
another. It will facilitate the last mile connectivity of infrastructure and also
reduce travel time for people.
Vision
PM Gati Shakti will incorporate the infrastructure schemes of various Ministries
and State Governments like Bharatmala, Sagarmala, inland waterways,
dry/land ports, UDAN etc. Economic Zones like textile clusters, pharmaceutical
clusters, defence corridors, electronic parks, industrial corridors, fishing
clusters, agri zones will be covered to improve connectivity & make Indian
businesses more competitive. It will also leverage technology extensively
including spatial planning tools with ISRO (Indian Space Research
Organisation) imagery developed by BiSAG-N (Bhaskaracharya National
Institute for Space Applications and Geoinformatics).
Gati Shakti- Master plan discussed in Union Budget 2022-23.
It is a masterplan that is for economic growth & sustainable development and is
driven by 7 engines – Roads, Railways, Airports, Ports, Mass transport,
Waterways & Logistics infrastructure.
These 7 engines will pull forward the economy in concordance. These engines
will be supported by the complementary roles of energy transmission, IT
communication, bulk water and sewerage and social infrastructure.
Key Highlights
• Railways will offer new products for small farmers and MSMEs, integrate
coastal and railway network.
• ‘One station, one product’ concept will be popularized to help local
businesses.
• 400 new-generation Vande Bharat trains will be developed and
manufactured in the next three years.
• 100 PM Gati Shakti cargo terminals will be developed in the next three
years.
• 2,000 km under Kavach for safety and capacity augmentation.

Multimodal connectivity between mass urban transport and railway stations, will
be facilitated “on priority”.
For hilly areas, according to Sitharaman, a National Ropeways Development
Programme will be taken up on public-private partnership mode. This scheme
may also cover congested urban areas. Contracts for eight ropeway projects for
60 km will be awarded in 2022-23.

Jyotiraditya M Scindia, Union Minster of Civil Aviation, today said 16 new

airports will be built in five states of India, and national highways of 1lakh km
will be widened under the PM-Gati Shakti scheme. He further said that, the
success of PM Gati Shakti will catalyse the multi-model connectivity in the
country, leading to realise the vision of $5 trillion economy.
Besides, Rs 1 lakh crore will be allocated to states to be used for PM Gati
Shakti and other related productive capital investment. It will 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
fiber optic network, and
• Reforms related to building byelaws, town planning schemes, transit-
oriented development, and transferable development rights.
Shares of railway services provider IRCTC Ltd., road builders such as Dilip
Buildcon Ltd., PNC Infratech Ltd. and Ashoka Buildcon gained between
2.6% and 4.2% after the announcement.
Conclusion
In conclusion, the Gati Shakti Infrastructure Plan is expected to synchronise
the activities of each department, transform the infrastructure sector and
provide an integrated, seamless and timely delivery of projects within
budgeted costs, motivate private companies to associate with government
projects, encourage investments in various development plans and boost the
Indian Economy.