Indian industry hopes that Gati Shakti, launched on Wednesday by Prime Minister Narendra Modi, will lead to better implementation of infrastructure projects and thus lead to lower logistics costs.
In an interview with Shereen Bhan of CNBC-TV18, TV Narendran, Chairman of CII, said the cost of logistics in India is 13-14% while in the developed world it is well below 6-8%. %.
Prime Minister Narendra Modi on Wednesday launched a Rs100 million national master plan for multimodal connectivity that aims to develop infrastructure to reduce logistics costs and boost the economy. Prime Minister Gati Shakti aims to reduce logistics costs, increase cargo handling capacity and reduce turnaround times, Modi said at a meeting to kick off the plan.
The plan aims to give more power and speed to projects by connecting all relevant departments on a single platform, he said, adding that the infrastructure projects of various ministries and state governments will be designed and executed with a common vision. Modi said taxpayer dollars in the past were “insulted” by a lethargic approach to development work, departments working in silos and there was no coordination on projects.
Development, he said, is not possible without good infrastructure and the government has now decided to develop it holistically. Gati Shakti joins different departments for the coordinated development of projects ranging from road to railways, aviation to agriculture, the prime minister said.
The President of the CII said with Gati Shakti that the government’s intention was right, but the action had to get it right. “The cost of logistics in our country is 13-14% while in the developed world it is much lower than 6-8%. In terms of competitiveness, Indian industry can bear the costs that it controls, but there are a lot of costs out of the industry’s control and this is where the government has to step in and create infrastructure. So, all the infrastructure projects that have been announced in the last two years and with this kind of monitoring system, we hope will lead to a more efficient delivery of these projects and therefore to a reduction in logistics costs ”, said Narendran.
“The money we plan to spend on infrastructure is several times more than what we have done in the past. So it is in everyone’s interest and the Prime Minister himself has mentioned that we have to make sure that taxpayers’ money is not wasted. , the intention is good, but the action must be good. There is a lot of use of technology, a lot of use of digital to keep up with different projects and hopefully there will be more visibility into what is happening in different parts of the There is a promise of better coordination between the various ministries, the Center and the State. So there is an attempt to do things differently and I hope they have learned from the past, ”added Narendran.
Sanjiv Bajaj, president-elect of CII, said Gati Shakti will help reduce supply chain and logistics costs as states can now better plan their infrastructure projects.
“Between the State and the Center, there are a number of actions taking place on the infrastructure side of the Center. If the State now knows this in advance on a common platform, then they can help and also plan on a complementary basis.The multiple layers of information that we understand has been made available in Gati Shakti should in fact increase the efficiency of the whole process of building infrastructure and reduce the chain of ‘supply and logistics costs for the industry and this can represent a big saving in the years to come. “
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With text entries from PTI.
(Edited by : Anilkumar Narayan)