FinMin issues directives for infra projects to be routed through PM GatiShakti’s NPG

PTI, May 22, 2022, 3:24 PM IST

All logistics and connectivity infrastructure projects, entailing an investment of over Rs 500 crore, would now route through the network planning group (NPG) constituted under the PM GatiShakti initiative with the finance ministry issuing the necessary instructions and creation of the national master plan digital platform, an official said.

According to an office memorandum of the department of expenditure dated April 28, a revised format has been issued for Public Investment Board (PIB)/Delegated Investment Board (DIB) project proposals.

”The revised format of the PIB/DIB memorandum…will apply to all the PIB/DIB proposals for new projects submitted on or after April 28, 2022,” it has said.

As per the revised format, proposals should include whether the project has components of logistics or infrastructure connectivity; and whether it has been examined by NPG for convergence and integration at the conceptualization or feasibility study stage.

The PM GatiShakti plan was announced last year to break departmental silos and bring in more holistic and integrated planning and execution of projects to address the issues of multi-modal and last-mile connectivities.

This will help bring down the logistics cost and promote effective and efficient planning of infrastructure projects.

An integrated infrastructure network planning group (NPG) has been constituted which has representations from various connectivity infrastructure ministries/departments involving their heads of network planning division for unified planning and integration of the proposals.

”We have created the national master plan digital platform. We have provided training to people concerned and now we have this mandatory provision from the finance ministry. So, now all logistics and connectivity projects will be approved on the principles of PM GatiShakti. All those projects, costing over Rs 500 crore will be considered by NPG,” the official said.

The Department for Promotion of Industry. and Internal Trade (DPIIT) has also conducted several training sessions with various government departments and held regional conferences across the states. The Technical Support Unit is also in place.

NPG consists of heads of the network planning wing of respective infrastructure ministries and it will assist the empowered group of secretaries (EGOS), which is headed by the cabinet secretary. EGOS consists of secretaries of 18 ministries as members and the Head of Logistics Division, under the DPIIT, as member convenor.

All the departments will approach the NPG first for approval before making a DPR (detailed project reports) at the planning stage, the official said, adding after the NPG’s clearance, the project would follow the normal procedure of approval by the finance ministry and the Cabinet, depending upon the projects.

For example, if the railway is planning a project on a specified route, so by putting the relevant information on the PM GatiShakti national master plan portal before finalizing the DPR, it can see whether the proposed track is crossing through public land or private property or forest or canal or highways.

Over 600 layers of data are there on the portal.