Union Finance Minister had allocated One Lack Crores for Interest-Free Capital Expenditure Loan for 50 years in the Union Budget for the Financial Year 2022-23 to the States as per the guidelines. As per the Expenditure Department letters to the States, Rs. 80,000 Crores were earmarked for PM Gatishakti Projects and the rest of the amount allocated was Rs. 4,000 Crores for PM Gram Sadak Yojana, Rs. 2,000 Crores for Digitization, Rs. 6,000 Crores for Urban Reforms and Rs. 3,000 Crores for Optical Fibre Cables along with Rs. 5,000 Crores for other projects. Any project that will be sustainable to get in operation with the means of finance only. Hence, Union Government is very clearly issued guidelines for a financial plan on 6835 eligible Projects for 111 Lack Crores under PM Gatishakti Yojana in the next 5 Years as Union Government Share dor 39%, State Government Share for 40% and Private Participation for 21% respectively. PM Narendra Modi-led Union Government intends to kick start the PM Gatishakti Yojana Projects by providing the initial financial assistance with an aim to showcase the Bharat as a modern technological Infrastructure driven space in the globe with the assistance of State Governments as per the requirements of each and every respective state as per their priority within the eligible projects as stipulated under various sectors by the Union Government.
The spirit behind the Gati Shakti initiation by Prime Minister Narendra Modi serves two purposes: to fill the infrastructure gaps in various sectors like affordable clean energy, reliable transmission and distribution, roads, railways, inland waterways, seaports and services thereof till the end-user of the product and service, Irrigation, Industrial Park and Social Infrastructure for enhancing the human living standards in all the required parameters as which has been stipulated by Prime Minister Narendra Modi under Gati Shakti Plan for the conducive atmosphere to attract investments and improve in qualitative infrastructure for better living standards among the public and expected additional growth of our country’s economy from 4% to 5% by 2025, that facilities to reach 5 trillion USD economy. In this process, Union Government had given priority for Sagaramala and Bharathmala projects along with all other sectors as stipulated by the Union Government.
The objective under Sagarmala is to attain the modernization of existing ports & establishment of new port development, enhancing the port connectivity, establishing of port-led industrialization and coastal economic zones with Smart cities. Already build 14 coast economic zones (CEZs) for ease of port connectivity through infrastructure development and freight-friendly expressways have been planned and under implementation as follows:
The Union Government has identified a total number of 802 projects under the Sagaramala programme with an estimated cost of Rs 5.48 Lack Crores and projects worth Rs 2.12 Lack Crores will be completed by 2024.
Further, the objective under Bharatmala Pariyojana (BMP) Phase-I for the construction of 34,800 Kilometers of National Highways by the Union Government and out of which 7,375 Kilometers construction had completed by December 2022 and the rest of the balance will be completed by 2027 with an estimated project cost ₹10.63 lakh crore. Narendra Modi led Union Government’s plan to connect North to South National Highways connectivity, already 1,350 Kilometers 8 lane Delhi to Mumbai Corridor with an outlay of 1 Lack crores had completed and 1,271 Kilometers 6 lane Surat to Chennai Corridor has been in progress with an outlay of 50 thousand crores with 320 Kilometers stretch in the State of Andhra Pradesh. Further, Bharatmala Pariyojana aims to interconnect Roadways, Railways, Airways and Waterways with Industrial Corridors adjacent to strategic locations around the Roads and Rail, Seaports, and Airports for the augment of Employment opportunities and sustainable inclusive growth in the Economy for Ease Of Doing Business in all corners of Bharat.
PM Gati Shakti Yojana had been well planned the all other infrastructure projects to link the Sagaramala and Bharath Mala Projects for transportation and industrial sectors along with building Social Infrastructure. In this initiation Union and State Government’s coordination in terms of equilibrium of balancing the funds are first step in the priority since the object 111 Crores Infrastructure investments in Roads, Railways, Airways and Water transport facilities for the best connectivity. But, everyone may raise the question that How can we get funds for 111 Lack cores for PM Gatishakti Yojana and there are doubts in the minds of many people that How the 1 Lack Crore loan fulfils the need of 111 Lack Crores requirements. As We know that, Rs. 46.50 Lack Crores have been required from the State Government, Rs. 41.50 Lack Crores have been required from the Union Government Rs. 23 Lack Crores required from the Private partnership ( Whether Domestic or FDI ) for the completion of whole PM Gatishakti Yojana Plan. In which, there will be no dispute on Funds for Rs. 23 Lack Crores from the Private Share since the Private Investors choose their project as per their expectation in a particular State as identified by the respective State Government.
The vital point is that financial resources from the State Government is the crucial factor for to the extent of Rs. 46.50 Lack Crores as funds are constraints to them to implement the scheme. But, the State Governments should have the proper financial plan and appropriate mechanism in the form of Project wise Special Purpose Vehicle ( SPV ) shall be incorporated and transfer the 1 Lack Crore eligible Interest-free loan from the Union Government for the respective state to their Project wise SPV along with the State equity for each project with an equivalent amount to the extent of fund eligible to receive the Interest-Free Loan from the Union Government. Hence, funds will be available for Rs. 2 Lack Crores for their Projects as their margin money by the all states together and the rest of the amount for Rs. 18 Lack Crores can be generated through International Financial Institutions as considered for Rs. 2 Lack Crores as margin money for 10% of the eligible project. But, each project of every State can be shown separately since the same financial institution may not approve for assistance the all the states and all the projects. Many times, even One State may not get financial assistance for it’s all its projects from the same financial institution. Hence, All states together can get at least Rs. 20 Lack Crores as financial assistance in a single stretch for the implementation of PM Gatishakti Yojana with Rs. 1 Lack Crore Interest-free loan from the Union Government. If the State Governments plan objectively, two cycles of financial plan exercise by the State Governments as explained earlier is enough within the 5 Years to reach the State Share of Rs. 40 Lack Crores conveniently, State Government Budgetary allocations and spent those funds for this Projects also contributes as the share of the equity. Further, all the States may not use a similar financial plan as each state may have its own modus operandi as per its convenience. Finally, Union Government Share in the Gatishakti Yojana for Rs. 41.50 Lack Crores is available from the respective departments Budgetary Allocations and Off Budget Borrowings for the specified projects as its share of funds. It is important that there will be required to adjust further Rs. 1 Lack Crore in any form like present Interest-Free loans as one more cycle to the State Government in next two to three years for sustaining their financial needs to implement their projects under this scheme.
At present announcement by the Expenditure Department of the Union Finance Ministry on 1 Lakh Crore Interest-Free Loans to the States as per the budgetary allocation by the Union Finance Minister is the first step to reaching the milestone as aspired by Prime Minister Narendra Modi. PM Gatishakti Yojana is not only a concept for the Infrastructure revolution, but also it is a Maha Yagna for the future generations of our Nation with the Coordination of the State Governments. Today’s 1 Lack Crore Interest-free loans by the Union Government to the States for Capital expenditure will be the first step to reach PM Narendra Modi aspired 111 Lack Crores Gatishakti Yojana.