The conception of the Gati Shakti plan and how it changed
ECONOMY & POLICY

The conception of the Gati Shakti plan and how it changed

This article, in two parts,addresses the origins of the Gati Shakti master plan, the flagship Rs100 trillion infrastructure scheme of the NDA Government, and its current challenges owing to financing and governance issues caused by a change in original project specifications. We will also examine what can be done using financial innovation and proven governance structures to bring nearly 1,800 projects within Gati Shakti back on track, saving crores of rupees in the process and creating over 36 million new jobs.

Gati Shakti, as it is known today, was earlier called the National Infrastructure Pipeline (NIP) when it became a Government of India scheme on August 15, 2019.

But before it became the NDA Government’s mega infrastructure plan, it was conceived as the ‘Construct India Mission’in the mind of a senior strategic planner at Reliance Industries, who was passionately interested in starting a construction boom in India and creating millions of new jobs.

The 2019 trigger

The Congress manifesto –back in the 2019 general election – contained a mega plan called the Nyuntam Aay Yojana (NYAY), or Universal Basic Income scheme, under which Rs 72,000 per year would be transferred to the poorest 20 per cent of households in India. Additionally, the Congress promised to make job creation its No.1 priority, in the public and private sectors, by filling all 4 lakh Central Government vacancies before March 2020 and persuading state governments to fill their 20 lakh vacancies.

As expected, the release of the Congress manifesto created a huge challenge for the BJP and its manifesto team was desperate for a BIG idea that could successfully meet the challenge posed.

Perfect timing for a BIG idea

The urgency within the BJP’s manifesto committee in April 2019 to come up with a big idea was,in fact, a major opportunity to launch a massive national development project that could simultaneously help double the size of the Indian economy from $ 2.7 trillion to $ 5 trillion and create 36 million new jobs in the construction and allied sectors.

As stated earlier, a plan titled the ‘Construct India Mission’ had already been conceived in 2017 and been submitted to the Ministry of Commerce during the term of the earlier NDA government. It helped that this Rs 87 trillion plan and its capacity to create 36 million new jobs had been evaluated by then commerce minister Suresh Prabhu, and that he had recommended it for official support by the Ministry of Commerce as a national plan. Therefore, the Construct India Mission presentation and concept note were sent as an input for the BJP manifesto to Suresh Prabhu, with a copy to all members of the BJP manifesto committee.

The note hit home and Meenakshi Lekhi (Minister of State for External Affairs) and Vinay Sahasrabuddhe (MP), both members of the BJP manifesto committee, wrote back to say that the Construct India Mission would be considered for inclusion in the BJP Manifesto. Thus, a critical first step was passed for avisionary initiativeto become reality by making it a part of the agenda of a major political party.

The Rs 100 trillion infrastructure plan

A few days later, the BJP national executive in New Delhi launched the party’smanifesto, which contained a mega plan to invest Rs 100 trillion in infrastructure projects across the country over the next five years.

With this, the BJP now had a plan to potentially double India’s GDP while creating millions of new jobs. Therefore, its plan was far more sustainablethan the Congress’s Universal Basic Income Scheme, which had no viable financing source.

First loss in translation

However, an error occurred when these concepts were transcribed into the BJP manifesto.

To read full version, CLICK HERE

This article, in two parts,addresses the origins of the Gati Shakti master plan, the flagship Rs100 trillion infrastructure scheme of the NDA Government, and its current challenges owing to financing and governance issues caused by a change in original project specifications. We will also examine what can be done using financial innovation and proven governance structures to bring nearly 1,800 projects within Gati Shakti back on track, saving crores of rupees in the process and creating over 36 million new jobs. Gati Shakti, as it is known today, was earlier called the National Infrastructure Pipeline (NIP) when it became a Government of India scheme on August 15, 2019. But before it became the NDA Government’s mega infrastructure plan, it was conceived as the ‘Construct India Mission’in the mind of a senior strategic planner at Reliance Industries, who was passionately interested in starting a construction boom in India and creating millions of new jobs. The 2019 trigger The Congress manifesto –back in the 2019 general election – contained a mega plan called the Nyuntam Aay Yojana (NYAY), or Universal Basic Income scheme, under which Rs 72,000 per year would be transferred to the poorest 20 per cent of households in India. Additionally, the Congress promised to make job creation its No.1 priority, in the public and private sectors, by filling all 4 lakh Central Government vacancies before March 2020 and persuading state governments to fill their 20 lakh vacancies. As expected, the release of the Congress manifesto created a huge challenge for the BJP and its manifesto team was desperate for a BIG idea that could successfully meet the challenge posed. Perfect timing for a BIG idea The urgency within the BJP’s manifesto committee in April 2019 to come up with a big idea was,in fact, a major opportunity to launch a massive national development project that could simultaneously help double the size of the Indian economy from $ 2.7 trillion to $ 5 trillion and create 36 million new jobs in the construction and allied sectors. As stated earlier, a plan titled the ‘Construct India Mission’ had already been conceived in 2017 and been submitted to the Ministry of Commerce during the term of the earlier NDA government. It helped that this Rs 87 trillion plan and its capacity to create 36 million new jobs had been evaluated by then commerce minister Suresh Prabhu, and that he had recommended it for official support by the Ministry of Commerce as a national plan. Therefore, the Construct India Mission presentation and concept note were sent as an input for the BJP manifesto to Suresh Prabhu, with a copy to all members of the BJP manifesto committee. The note hit home and Meenakshi Lekhi (Minister of State for External Affairs) and Vinay Sahasrabuddhe (MP), both members of the BJP manifesto committee, wrote back to say that the Construct India Mission would be considered for inclusion in the BJP Manifesto. Thus, a critical first step was passed for avisionary initiativeto become reality by making it a part of the agenda of a major political party. The Rs 100 trillion infrastructure plan A few days later, the BJP national executive in New Delhi launched the party’smanifesto, which contained a mega plan to invest Rs 100 trillion in infrastructure projects across the country over the next five years. With this, the BJP now had a plan to potentially double India’s GDP while creating millions of new jobs. Therefore, its plan was far more sustainablethan the Congress’s Universal Basic Income Scheme, which had no viable financing source. First loss in translation However, an error occurred when these concepts were transcribed into the BJP manifesto. To read full version, CLICK HERE

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