The disbursements are part of ‘Scheme for Special Assistance to the States for Capital Investment for 2022-23’ which was unveiled in April by the Ministry of Finance. The scheme seeks to provide assistance to the states with a total allocation of Rs. 1 lakh crores in the form of 50-year interest free loan for capital investments.
The Department of Expenditure under the Ministry of Finance has approved disbursement of over Rs. 4,000 crores to states for undertaking various infrastructure projects, which conform to the principles and objectives of PM Gati Shakti Mission.
The disbursements are part of ‘Scheme for Special Assistance to the States for Capital Investment for 2022-23’ which was unveiled in April by the Ministry of Finance and operated by the Department of Expenditure. The scheme seeks to provide assistance to the states with a total allocation of Rs. 1 lakh crores in the form of 50-year interest free loan for capital investments.
According to a senior official, the total allocation earmarked for state projects under the scheme which conform to PM Gati Shakti framework is Rs. 5,000 crores. All 28 states have submitted about 190 projects amounting to about Rs. 5,000 crores.
“Post April, after the notification, we have considered more than 190 projects from 28 states of value more than Rs. 5,000 crores total and these projects have been recommended to the Department of Expenditure for approval and disbursement of funds to the respective states as per their share,” Dr. Surendra Ahirwar, Joint Secretary (Logistics Division), Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry told ET Infra.
The logistics division at DPIIT is spearheading the PM Gati Shakti Mission which is aiming for the development of seamless multimodal connectivity and logistics infrastructure in the country.
A special screening committee was constituted within the DPIIT, which evaluated whether the 190 odd projects submitted by the states were in conformity with the principles and objectives of PM Gati Shakti and they were recommended to the Ministry of Finance.
“They (Department of Expenditure) have given approval to most of them. They have considered all 191 proposals and some of them have been cleared and to the extent of more than Rs. 4,000 crores have already been approved by the Department of Expenditure for disbursement among the states,” said Dr. Ahirwar.
Among the states, allocation to Andhra Pradesh is at Rs. 202 crores, Bihar at Rs. 500 crores, Chattisgarh at Rs. 170 crores, Gujarat at Rs. 174 crores, Haryana at Rs. 55 crores, Jharkhand at Rs. 165 crores.
According to the scheme, for alignment with PM Gati Shakti framework, states need to undertake updation of required data layers on PM Gati Shakti National Master Plan portal, such as land revenue maps, formulate state logistics policy, creation of Empowered Group of Secretaries, Network Planning Group and Technical Support Unit.
Guiding principles for selection of eligible projects include logistics efficiency and resilience, integrated planning approach, unity of economic clusters, projects aiming at faster movement of goods, among others.
According to Dr. Ahirwar, projects submitted by the states include connectivity infrastructure to industrial zones, data centers, inland container depots, container freight stations, critical infrastructure around economic zones, warehousing development, food parks, traffic management system, among others.
As per the scheme, while allocation for PM Gati Shakti focused projects is limited to Rs. 5,000 crores out of total Rs. 1 lakh crores, additional amount from savings under other parts of the scheme may also be reallocated to PM Gati Shakti focused projects based on response of states and utilization of fund.
“Then it is up to the Ministry of Finance to consider because they have said in case there is great merit in the projects and there are funds spared under the scheme from other heads, then it can be allocated to this particular kitty,” said Dr. Ahirwar.
The other parts, in which the Rs. 1 lakh crore interest free loan is distributed includes funding for PM Gram Sadak Yojana, incentives for digitization, optical fibre cable network, urban reforms and capital works.
