Infrastructure boost is expected to grab the spotlight of the forthcoming Budget 2023, to be presented by Union Finance Minister Nirmala Sitharaman on February 1, as the investments in the infra sector create huge job opportunities and could add much needed spins to the growth story of India. Narendra Modi-led Central government has over the years put focus on the infrastructural development in the country.
A wide array of centrally sponsored schemes such as Pradhan Mantri Awas Yojana-Urban, National Smart Cities Mission, Metro Rail and Regional Rapid Transit System, Atal Mission For Rejuvenation and Urban Transformation Mission (AMRUT) Mission underscores the commitment of the government to bolster the infrastructural set-up of the country to bring holistic development. The budgetary push will keep the momentum of infrastructural development rolling on that could create a strong base for India to become the third largest country by 2030
Infra investments
In the backdrop of the job crisis and sluggish economy, experts expect that the government will jack up Capex with major thrust on Gati Shakti and National Infrastructure Pipeline. To make India a $5 trillion economy by 2025, the government will have to spend the lion’s share of its budget on infrastructure that could churn out job opportunities in the run-up to the Lok Sabha elections- 2024.
On the go to expedite infrastructure projects
Road Transport and Highways Minister Nitin Gadkari recently held a high-level meeting to address existing interministerial issues regarding the implementation of various infrastructure projects to accelerate Prime Minister Narendra Modi’s flagship Gati Shakti scheme.
According to an official statement, Gadkari said an action plan was introduced to push up the PM’s Gati Shakti scheme’s progress and scores of issues were underlined for deliberation to expedite the ongoing infrastructure projects, reported PTI.
In the meeting, attended by Union Commerce and Industry Minister Piyush Goyal, Railways Minister Ashwini Vaishnaw, Union Environment, Forest and Climate Change Bhupender Yadav among others, discussions were held at length on environment clearances, land policies of Railways and the Ministry, guidelines for environment and forest clearance among others.
Budgetary reinforcement to Gati Shakti
Gati Shakti, Prime Minister’s flagship National Plan for Multi-Model Connectivity, is deemed to be a key driver for infrastructure development and a major boost for the growth of India’s economy. All eyes are on the Finance Minister’s kitty as it is expected that Budget 2023-24 may take Gati Shakti, which surveys the work progress of all key infrastructure projects, to new heights. Industry experts are of the opinion that the Budget 2023-24 will have several measures to reinforce the Gati Shakti-related projects. It is likely that the Budget may dole out additional incentives to states to undertake the Gati Shakti related projects under the Capital Expenditure programme for the next financial year, according to a report published by FE. The Centre may offer a large Capex loan to the state governments in Financial Year 24 as well to bolster the economic growth. The Centre and states will, as sources told FE, will focus on the coordination to improve investments through the implementation of initiatives like PM Gati Shakti and National Infrastructure Pipeline. .
Capex support to 18 states
Out of the 1 trillion interest-free 50-year Capex loans, the Centre has sanctioned around Rs 5000 crore to 18 states to implement Gati Shakti related projects in the current financial year. The beneficiary states include: Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Goa, Himachal Pradesh, Haryana, Jharkhand, Karnataka, Manipur, Meghalaya, Maharashtra, Madhya Pradesh, Nagaland, Sikkim, Tamil Nadu, Tripura and Uttar Pradesh.
Gati Shakti beyond boundaries of India
In an effort to develop holistic infrastructure in India, the PM Gati Shakti was launched in October 2021 with the aim to integrate planning and coordinated implementation of various projects in cooperation with state governments. The Gati Shakti has revolutionize infrastructure in India that provides multimodal infrastructure connectivity to various economic zones by putting together 16 ministries, including railways and road transport & highway, on one platform, which enables smooth connectivity for the movement of people, goods and services from one mode of transport to another one. PM Gati Shakti gives a template for the incorporation infrastructure schemes of various ministers and states like Bharatmala, Sagarmal, inland waterways, ports, UDAN. India is also working on the implementation of many infrastructure projects in neighbouring countries. The ambit of PM Gati Shakti may zoom out to cover some important projects in Nepal, Bangladesh, Bhutan and Sri Lanka. The vision of PM Gati Shakti is based on six pillars: comprehensiveness, prioritization, optimization, synchronisation, analytical and dynamic.