Gati-Shakti to improve infra efficiency, reduce logistics costs: PM Modi

"Even today, logistics cost is considered to be 13-14 per cent of India's gross domestic product, which is higher than other countries," Modi said.

Prime Minister Narendra Modi on Monday said that PM GatiShakti, the government’s digital portal aimed at breaking departmental silos, has a huge role in improving infrastructure efficiency and reducing the cost of logistics

“Infrastructure Planning, Implementation and Monitoring will get a new direction from PM Gati-Shakti. This will also bring down the time and cost overrun of the projects,” the prime minister said in a post-budget webinar,

Even today, logistics cost is considered to be 13-14% of India’s Gross Domestic Product, which is higher than other countries, Modi said.

The government’s Unified Logistic Interface Platform (ULIP) is integrating 24 government departments and six ministries to create a single-window logistic platform, leading to reduced costs, he added.

In October, Commerce Minister Piyush Goyal had said that Gati-Shakti and other government initiatives can help bring down the cost of logistics to 8% of the country’s GDP.

Modi also called on state governments to make the Gati-Shakti platform the base for their projects and economic zones. Among states, Gujarat is reportedly already on board.

Business Standard had previously reported that GatiShakti, or national master plan portal, is currently in a testing phase and a full-fledged launch is likely by March.

The prime minister said that the portal will significantly help Indian exports, and make Indian MSMEs competitive in the global market.

Under the Gati-Shakti plan, a logistics division in every department has been envisaged, along with the formation of an empowered group of secretaries for logistics efficiency.

Calling on the industry to use the portal, Modi said that more than 400 data layers are available on the platform now, with information on existing and proposed infrastructure, along with data on forest land and available industrial estate, which will help private players get various clearances at the Detailed Project Report (DPR) stage.

“This will also be helpful in reducing your compliance burden,” he said.

In her budget speech, Finance Minister Nirmala Sitharaman had said that GatiShakti will be one of the four priorities of the government in 2022-23. Centre has allocated Rs. 7.5 trillion for capital expenditure in the next financial year, as against Rs. 5.54 trillion in 2021-22.

As part of the government’s plan to boost infrastructure, the allocation of ministry of road transport and highways has been increased by 68% to Rs. 1.99 trillion, while that of the railways ministry has been increased by 27.5% to Rs. 1.40 trillion.

Launched in October, GatiShakti aims to bring the data and processes of state governments and key infrastructure ministries under a single platform.