Date: 03/09/2022

Relevance: GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment; Infrastructure: Energy, Ports, Roads, Airports, and Railways etc.

Key Phrases: Logistics Sector in India, Transportation in India, National Infrastructure Pipeline (NIP), PM Gati Shakti, ULIP (Unified Logistics Interface Platform)

Context:

• Recently a paper by the International Monetary Fund (IMF) on ‘Road Quality and Mean Speed Score’ ranked India 127th among 162 countries in terms of road transport speed.

Background:

• The United States is the fastest country, with a mean speed score of 107 kmph, while India has a mean speed score of 58 kmph.
• This low speed is linked with the fact that India has high logistics costs of around 13-14 percent of GDP as against 8-10 per cent in the US and Europe.
• Reducing logistics costs is essential for India where freight activity is expected to grow five-fold by 2050.
• Out of more than Rs 1 lakh crore approximately 33 percent of National Infrastructure Pipeline (NIP) is allocated towards the Logistics Sector Projects.

Key Challenges in India’s Logistics Sector

• Lack of planning and synergy amongst the various ministries leads to infrastructure being under-utilized, outdated, or congested by the time it is finally completed.
• Dearth of Freight Data:
  • There is a serious issue of data unavailability on predictive freight rate trends, supply-demand gaps, truck utilization factors, corridor congestion data etc.
  • This hinders planning and execution and a vicious cycle is perpetuated.
• Environmental and Economic issues: Many projects are delayed due to environmental clearances or in absence of funds.
• Lack of last mile connectivity has resulted in a lower share of Rail vis-à-vis Road transport which increases logistics costs.
• High Fuel Cost is the biggest deterrent as it leads to increased transportation costs to the shippers making it less viable and thus prompting lesser investments.
• The lack of coordination between the Union and State executing bodies may result in the non-utilization of newly created public infrastructure and frequent conflicts.

Integration of Data in PM Gati Shakti:

• PM Gati Shakti provides a comprehensive database of ongoing and future projects of infrastructure across Ministries of Union and States.
• This data will be integrated with 200+Geographic Information Systems (GIS) layers with visibility to various stakeholders so that planning, designing, and execution can be done with a shared vision.
• Project delivery will achieve efficiency through collaboration, coordination, data-backed project planning and real-time data analysis.

Multi-Model Connectivity through information management:

• Gati Shakti Digital Platform aims at seamless integration of systems and policies alongside efficient project management.
• Gati Shakti projects will leverage technology such as spatial planning and data analysis tools.
• The techno-enabled approach to infrastructure development will integrate project geography data across all 16 infrastructure ministries and all data integrated into a single database will ultimately enable faster decision making.
  • For instance, road construction involves multiple stakeholders, NHAI (Highways), State PWD or Rural Development Department (District roads), and BRO(border areas); the Gati Shakti will enable simultaneous coordination.
• Dynamic mapping of brownfield and Greenfield projects on the Gati Shakti GIS Portal, with real-time updation, will provide visibility to implementing agencies to align their priorities properly.

ULIP (Unified Logistics Interface Platform): The new age of logistics clearing

• Gati Shakti plan also aims to develop a nationwide network integrating digital systems of various ministries dealing with logistics under one platform known as ULIP (Unified Logistics Interface Platform)
• ULIP will facilitate minimal documentation, real-time information and faster movement of goods.
• The ULIP will provide quality data from various data sets of different ministries and departments such as Vahan Saarthi of Highway ministry, ICEGATE of Customs Department, FASTag of NPCI etc.
• The Gati Shakti can help in finding the most appropriate mix of the fleet, cost-effective and the most optimal route using ULIP Data and AI-driven route optimization solutions.
• Combining ULIP Data with new age tech such as Artificial Intelligence and Machine Learning tools can lead to a prediction of freight trends, supply-demand gaps etc.
  • Based on such data, interventions can be done both by government and private entities for better results.

Conclusion:

• The PM Gati Shakti and other such initiatives are putting greater emphasis on
  • Data-backed based holistic planning and implementation
  • Enhancement of infrastructure to cater to the needs of the future
  • Multimodal connectivity, and rationalization of processes.
• These are the right steps that need to be pursued with greater zeal than scoring for political goals, then only we’ll be able to achieve the national priorities of Atmanirbhar Bharat by ensuring quick, efficient, and economical transport of goods across India.

Source: The Hindu BL

Mains Question:

Q. PM Gati Shakti Plan has the potential to address long-standing issues of India’s logistics sector if implemented in its true spirit, Elucidate. Also critically examine the aims and objectives of PM Gati Shakti Plan (250 words).