The Indian government recently launched the PM GatiShakti (NMP), a plan that will help it achieve its goal of becoming a $5 trillion-dollar economy. The program integrates different modes of transport to reduce the cost of logistics.
The Indian government recently launched the PM GatiShakti (National Master Plan) to achieve its goal of $5 trillion in economic output. The plan integrates different modes of transport to reduce logistics costs.
Jane Fraser, CEO of Citi, is not exaggerating when she says: “I often refer to India as a gold standard” (emphasis mine) in the digital shift and that it will remain an important destination for businesses around the world. Fraser said this to India’s Finance Minister Nirmala Sitharaman during their meeting in New York on October 20th.
Fraser’s compliment for India, a country in the third world, is based on its ongoing digital revolution over the past few years. The Prime Minister Narendra Modi-led Government has continued its policy of using digital tech for progress all around. They have recently unveiled a national plan that would transform the country’s logistics sector connectivity, including digital media. This will lower the cost of logistics for businesses and industries.
The NMP will cover economic zones such as textile clusters and pharmaceutical clusters. It will also include defense corridors and electronic parks. The NMP will use technology to its fullest, including spatial planning tools developed by BiSAGN (Bhaskaracharya National Institute for Space Applications and Geoinformatics).
Modi, who launched the plan on October 13th, said: “Under PM GatiShakti National Master Plan, everything is being connected, from roads to rails, from agriculture to aviation, and different ministries and departments. Every mega project has a technology platform that is being prepared so every department has the correct and accurate information at the right time.
Modi referred to the plan as a continuation of holistic governance. “The PM GatiShakti master plan not only aims to bring together government processes and stakeholders, it also helps integrate different modes or transportation.”
Multimodal connectivity provides seamless and integrated connectivity of people, goods, and services moving from one mode to another.
This will reduce people’s travel time and facilitate last-mile connectivity. PM GatiShakti, which is the Hindi word for ‘SpeedPower,’ will inform the business and public community about upcoming connectivity projects and other business hubs. Investors will be able to plan their business at the most suitable location, resulting in enhanced synergies. This will increase the number of jobs and boost the economy. Reducing logistics costs, improving supply chains, and ensuring proper links for local industry and consumers will increase the global competitiveness of local products. In response to Modi’s relentless efforts to create a next-generation infrastructure that improves the ‘Ease of Living’ and ‘Ease of Doing Business,’ PM GatiShakti NMP is addressing past issues by institutionalizing holistic planning among stakeholders for major infrastructure projects. The projects will not be planned and designed in separate silos but with a shared vision. The project will integrate the infrastructure schemes of different ministries and state governments like Bharatmala (a national airport development program), Sagarmala (a regional airport program of the Government of India), UDAN, etc.
Key points
* The NMP of PM GatiShakti will be monitored by a three-tiered system, with an Empowered Group of Secretaries headed by the Cabinet Secretary.
* A multimodal Network Planning Group will be formed with the participation of heads of Network Planning Divisions from different Ministries and Departments. The NPG is supported by the Technical Support Unit (TSU), located at the Logistics Division of the Ministry of Commerce and Industry.
* This is going to change the game in terms of inter-ministerial, inter-departmental collaboration in infrastructure planning.
* It represents a paradigm change in India’s development planning.
* It will increase efficiency, reduce waste, and ensure maximum utilization of resources.
* It will institutionalize holistic project planning for all stakeholders in major infrastructure projects. Through a centralized web portal, all departments will have access to each other’s project information.
* It will offer multimodal, seamless, and integrated connectivity for the movement of goods, people, and services.
* It will create multiple employment opportunities and reduce logistics costs while improving supply chains and making local products globally competitive.
The Pillars
The PM GatiShakti system is built on six pillars.
1. Comprehensiveness: It will encompass all existing and planned projects of different Ministries and Departments in a centralized portal. Every department is able to see the activities of other departments, providing vital data for planning and executing projects.
2. The Prioritisation of Projects: Different Departments can prioritize projects by interacting across sectors.
3. Optimization: The National Master Plan assists different ministries in planning for projects after identifying critical gaps. The plan will assist in choosing the best route for the transportation of goods between two locations in terms of cost and time.
4. Syncronisation: Individual Ministries and Departments work in silos. Lack of coordination between planning and implementation causes delays. PM GatiShakti’s role will be to ensure that the work of all departments and different levels of government is coordinated in an integrated manner.
5. Analytical: This plan provides all the data in one place, with GIS-based spatial planning tools and analytical tools that have 200 layers. It will give the agency executing the project a better view of the data.
6. Dynamics: All Ministries and Departments can now visualize, examine, and monitor the progress made by the cross-sectoral projects through the GIS platform. Satellite imagery will provide on-ground updates periodically, and the progress will be updated regularly on the portal. This will allow for the identification of the most important interventions to enhance and update the master plan.
