In a departure from the past, the government proposes to fund the entire 2.08 lakh crore capital outlay, up 5% over 2021-22 (BE), for the highway sector through budgetary allocation and asset monetisation proceeds (20,000 crore), without resorting to incremental borrowing at National Highways Authority of India (NHAI) in the next fiscal. The move, analysts said, is aimed at reining in NHAI’s burgeoning debt that stood at 3.38 lakh crore as on November 31, 2021. As per revised estimate (RE), NHAI is likely to borrow 65,000 crore in 2021-22.
The plan not to resort to borrowing next fiscal, however, does not take anything away from government’s seriousness about developing futuristic modern infrastructure projects including highways under the Gati Shakti programme that aims at improving logistics efficiency and aimed at developing multi-modal connectivity for the ease of both passengers and the transport goods.
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The government proposes to build 25,000 km highways next fiscal at an all-time high pace of over 68 km per day compared with around 37 km/day achieved, the highest so far, in 2020-21. Plan is also there to formulate Gati Shakti master plan for developing expressways next fiscal to facilitate faster movement of people and goods.
National ropeways development programme will be taken up under the “Parvatmala” programme in hilly areas of North East, Uttarakhand, Himachal Pradesh and Kashmir in the public-private-partnership (PPP) mode. Apart from tourism, the programme will also boost employment in those states. The government also proposes to try the programme at the congested urban areas. Contracts for eight ropeway projects for a length of 60 km will be awarded in 2022-23. Contracts for implementation of multimodal logistics parks at four locations through the PPP mode will also be awarded in 2022-23.
Indian Railways, one of the seven engines that will drive the Gati Shakti programme, has received even a higher, 14%, capital outlay at `2.45 lakh crore for 2022-23. The government’s plans for the country’s lifeline include development of 100 PM Gati Shakti cargo terminals for multimodal logistics facilities during the next three years and indigenously develop & manufacture 400 new-generation Vande Bharat trains with better energy efficiency and passenger riding experience during the next three years.
As a part of Atmanirbhar Bharat, 2,000 km of network will be brought under Kavach, the indigenous technology for safety and capacity augmentation in 2022-23. “Railways will develop new products and efficient logistics services for small farmers and small & medium enterprises, besides taking the lead in integration of postal and railways networks to provide seamless solutions for movement of parcels. One Station-One Product’ concept will be popularised to help local businesses & supply chains,” FM said in her Budget speech. Railway minister Ashwini Vaishnaw said the integration of posts and railways will bring better logistics solutions for people living in remote areas.
