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PM GatiShakti recommends 396 infrastructure projects worth INR 18.66 lakh crore

#Infrastructure News#Infrastructure#India
Synopsis

As many as 396 infrastructure projects across sectors such as roads and railways, with a combined estimated cost of INR 18.66 lakh crore, have been evaluated through the Network Planning Group under the PM GatiShakti initiative. Of these, 256 projects have received sanction, while 198 are currently under implementation. The initiative is aimed at improving coordination between infrastructure ministries and creating integrated multimodal connectivity to lower logistics costs. The government’s latest logistics assessment also indicates that logistics expenditure has fallen to 7.97% of GDP in 2023-24, showing the broader impact of infrastructure and policy measures.

The government has recommended 396 infrastructure projects worth a combined INR 18.66 lakh crore for approval under the PM GatiShakti initiative, covering different ministries and sectors including roads and railways. 
The projects have been evaluated by the Network Planning Group (NPG), which was constituted as part of PM GatiShakti to assess large infrastructure proposals from the perspective of integrated and multimodal connectivity. 
According to government data, all 396 projects evaluated through the NPG mechanism have a total estimated cost of about INR 18.66 lakh crore. Of these, 256 projects have been sanctioned and 198 are currently under implementation. 
PM GatiShakti was launched in October 2021 as the National Master Plan for multimodal connectivity. Its objective is to bring different infrastructure projects and ministries onto a common planning framework so that road, rail, ports, airports, waterways and other connectivity infrastructure can be planned in coordination rather than separately. 
Infrastructure and connectivity projects involving investments of more than INR 500 crore are routed through the NPG mechanism. The group examines whether proposed projects are aligned with wider connectivity requirements and can work effectively with existing and planned infrastructure. 
The government has positioned the initiative as a way to improve the movement of goods and people while reducing logistics costs. The PM GatiShakti platform brings information from different ministries and departments together to help identify infrastructure gaps, coordinate projects and select routes based on time and cost considerations. 
The focus on logistics has become more relevant as India continues to expand its manufacturing, warehousing, freight and trade infrastructure. A government-commissioned study by the National Council of Applied Economic Research found that India's logistics costs stood at 7.97% of GDP in 2023-24, a substantial change from the 13-14% levels often cited in earlier industry estimates. 
PM GatiShakti is also being implemented alongside other infrastructure and logistics initiatives, including the National Logistics Policy, Dedicated Freight Corridors, Sagarmala and improvements in cargo terminals. Together, these measures are intended to improve multimodal movement and reduce dependence on a single mode of transport. 
The NPG mechanism is particularly relevant because infrastructure projects often require coordination between several departments. Before the GatiShakti framework, road, rail, port and other infrastructure projects could be planned independently, creating gaps in connectivity and increasing the time and cost involved in moving goods. The initiative was designed to address this issue through coordinated planning. 
The government has also expanded the use of GatiShakti-linked infrastructure for freight movement. GatiShakti Cargo Terminals, for instance, are intended to connect rail freight with road, ports and other modes. Railways and India Post have also introduced the Rail Post Gati Shakti Express Cargo Service, which provides services including doorstep pickup and delivery and scheduled rail movement. 
Prime Minister Narendra Modi, while addressing the nation from the Red Fort during the Independence Day celebrations, said the focus under GatiShakti should remain on creating seamless and faster connectivity across the country. 
Experts have said that the next stage of the programme needs to look beyond connecting major cities, industrial centres and ports. The wider objective would be to ensure that goods can move efficiently from the factory gate through warehouses and transport networks to the final consumer. 
Suryansh Jalan, Chief Business Officer at FarEye, said physical infrastructure creates the required capacity, but digital coordination is needed to convert that capacity into efficient commercial movement. He said the next phase would depend on bringing multimodal infrastructure together with real-time visibility, better route planning and more predictable last-mile delivery. 
According to Jalan, better integration could lower the cost of moving goods, improve the competitiveness of Indian businesses and strengthen the country's logistics network. 
The progress of PM GatiShakti will therefore depend not only on the number and value of projects sanctioned, but also on how effectively these projects work together after completion. For businesses, manufacturers and logistics operators, the practical benefit will come from shorter transit times, fewer connectivity gaps and better coordination between different modes of transport. 
Source PTI

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