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COVER STORY
Union Budget 2022 in a nutshell…

 The budget intends to provide a blueprint to steer the Indian economy for the next 25 years under the aegis of PM
GatiShakti viz. transformative approach for economic growth and sustainable development recognizing infrastructure
as a cornerstone. For financing infrastructure, the government has stepped up public investment complemented by
private capital at a significant scale with emphasis on PPP model. The key highlights include:
 PM GatiShakti National Master Plan to encompass the engines for economic transformation, seamless multimodal
connectivity, and logistics efficiency
 Expressways to be augmented in 2022-23 to facilitate faster movement of people and goods
 The National Highways network to be expanded by 25,000 KM in 2022-23
 Contracts to be awarded in 2022-23 for implementation of Multimodal Logistics Parks at 4 locations through PPP mode
 Railways to develop new products and efficient logistics services for small farmers and SMEs to provide seamless solutions
for movement of parcels
 As a part of ‘Atmanirbhar Bharat’, 2,000 km of rail network will be brought under ‘Kavach’ i.e., the indigenous world-class
technology for safety and capacity augmentation in 2022-23
 Following key developments to be achieved over the next 3 years:
400 new-generation ‘Vande Bharat Trains’ with better energy efficiency and passenger riding experience;
100 PM GatiShakti Cargo Terminals for multimodal logistics facilities
 Multimodal connectivity between mass urban transport and railway stations to be facilitated on priority basis
 Design of metro systems, including civil structures to be re-oriented and standardized for Indian conditions
 Sovereign Green Bonds to be issued for mobilizing resources for green infrastructure - proceeds to be deployed in public
sector projects to reduce carbon intensity.
Source: EY

WHAT’S IN STORE? Visakhapatnam port and other economic centres,” he said.
Connectivity with remote and tough terrains, decongesting major Nitin Gadkari has his hands full for 2022. NHAI has to award a
points in the road network, an integrated multi-modal national project pipeline of `4 lakh crore by 2024. The development of
network of transportation and logistics, and steering ahead with 22 greenfield expressways to connect major economic centres
the ambitious voluntary vehicle scrappage is well on his radar. Plans are also afoot to provide broadband
policy are also on the 2022 radar. “Next connectivity along greenfield highways.
calendar year is going to be better (in As Amitabh Kant highlighted, “In economics parlance, multiplier
terms of national highways construction) effects accrue to the economy through infrastructure spending.
than the current year... next year, we are This means that not only does the project contribute immediately
hoping that many of the projects which through increased demand for labor, construction materials, but
are being bid out, awarded this year and also through the second order effects improved connectivity
which have come to a certain stage, will be completed,” said brings. Goods & people will move faster between destinations.
Giridhar Aramane Union Road Transport Secretary. The cost of logistics comes down. Studies by the Reserve Bank of
“Our achievement can be much more than the current financial India and the National Institute of Public Finance and Policy have
year. We also have a pipeline for awards next year under the estimated the multiplier to be between 2.5-3.5x. This means, for
Bharatmala Pariyojna and under the National Highway general every rupee spent by the government in creating infrastructure, GDP
programme,” Aramane said. MoRTH has identified projects which gains worth `2.5-3.5 accrue. Furthermore, in times of economic
need to be offered next year under the Bharatmala Pariyojna. contractions, this multiplier is larger than the one during times of
“Many of them are important greenfield projects and many others economic expansion. This could imply that public investment if
are under the National Infrastructure Pipeline (NIP),” he said and timed and targeted right, can actually ‘crowd-in’ private investment,
emphasized these projects will help provide “logistics efficiency rather than ‘crowd-out’. To realize these benefits, raising our capital
to the Indian economy. We have identified the congestion points expenditure as a % of GDP will be crucial, at both the Central &
in the country, which need to be cleared and also the economic State level.”
centres, which have huge traffic flow between them. So, they have If all plans and implementational guidelines are in sync, then we will
to be connected with efficient roads,” he said. soon witness a Resurgent India on the back of an all-encompassing
“We are also thinking of securitization of Raipur–Visakhapatnam world-class infrastructure having greater connectivity. It’s about time
national highway project, which is going to be the first mineral that construction companies join hands in realizing this dream
highway in the country in terms that it carries most of the of making India at par with the rest of the world and boost the
mineral produced in Chhattisgarh, Odisha and Jharkhand to economic diaspora of the country.

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