Budget 2022: Gati Shakti to gather pace with 25,000 km highway expansion

Plan outlay set at Rs 100 trillion for multi-modal connectivity; 16 ministries to work on integrated infra development, including railways, roads, oil and gas, power, telecom, shipping and aviation

As part of its mega investment plan, India is set to see its highest addition in National Highways in 2022-23, adding 25,000 kilometers as part of the ambitious, a Rs 100 trillion plan for multi-modal connectivity, finance minister Nirmala Sitharaman lined up in her Budget 2022 speech on Tuesday.  

The current expansion plan is expected to help the faster movement of people and goods. Around Rs 20,000 crore will be mobilised through innovative ways of financing to complement the public resources, Sitharaman added. The rise in addition of national highways is compared to 13,327 km of roads constructed in 2020-21 and 10,237 km in 2019-20. During the financial year 2021-22, around 3,824 km are added till September. In 2020-21, the construction of roads per day had increased to 36.5 per cent as against 28 km  in 2019-20.

The Gati Shakti programme includes the expansion of roads, railways, ports, airports, mass transport, waterways and logistics infrastructure. Modi had launched the Gati Shakti master plan in October 2021.  As part of the multi-model logistics plan, all these key areas are expected to work together. The roadmap is lined up to drive India's infrastructure growth for the next 25 years.

As a blueprint of 'Amrit Kaal', there will be a big investment push in the infrastructure sector guided by PM Gati Shakti, Sitharaman said highlighting the government's multi-model approach. She also batted for inclusive development, energy transition and climate action on achieving this goal. As part of the plan, 16 ministries will work together for integrated infrastructure development, including railways, roads, oil and gas, power, telecom, shipping and aviation.

“Budget 2022’s emphasis on logistics, specifically for the Gati Shakti Plan, reiterates how the logistics sector is integral to the economic and trading activities of India. In India, road transportation dominates the logistics sector, with a majority share of 60 per cent, followed by Railways, which has a 30 per cent contribution. Given this context, the Budget’s announcements under the National Gati Shakti plan are a welcome move for the sector. The Gati Shakti Masterplan for Expressways will expand roadways by 25,000 milometres, connecting remote areas of the country with manufacturing hubs. The 100 cargo terminals to be developed under this programme will ensure a more efficient logistics connectivity. The concept of “one station, one project” will help in popularizing local businesses and supply chains, with the Railways to develop projects specifically for the MSME sector. The announcement of contracts to be awarded for multimodal logistics parks also puts into focus the government’s efforts in ensuring logistics efficiency," said Neeraj Bansal, COO - India Global and National Leader - Supply Chain Realignment, KPMG in India.