Fueling Efficiency: Government Cracks Down on Pipeline Expenses with Gati Shakti

In a significant development, the Ministry of Petroleum and Natural Gas in India is set to substantially reduce expenditure on gas pipeline construction by leveraging the PM Gati Shakti National Master Plan (PMGS-NMP). This initiative represents a transformative approach to integrated and holistic planning across various ministries, aiming to improve multimodal connectivity, logistics efficiency, and to address critical infrastructure gaps.

Key Highlights:

  1. Digital Platform Integration: The PMGS-NMP is a digital platform that maps all infrastructure projects in India, offering critical information across a spectrum of connectivity options, including rail, port, road, gas pipelines, and optic fibre. It’s overseen by the Department for Promotion of Industry and Internal Trade (DPIIT).
  2. Pipeline Construction and Savings: Approximately 1,000 km of pipelines are planned using the PM Gati Shakti portal. Notably, the ministry has already achieved a saving of ₹169 crore by reducing the length of five proposed pipelines for the North East Gas Grid (NEGG) by 42 km.
  3. Significant Projects: Among the notable projects are the Mumbai-Nagpur-Jharsuguda pipeline, the Indo-Nepal pipeline between Siliguri and Jhapa, the Mundra-Panipat pipeline, and the Gurdaspur-Jammu natural gas pipeline.
  4. Cross-Border Infrastructure Expansion: The PMGS-NMP portal’s success has opened possibilities for cross-border infrastructure projects with neighboring countries like Bangladesh, Nepal, and Sri Lanka.
  5. Efficiency in Exploration: The NMP portal, with its extensive land records, has facilitated the utilization of previously restricted areas (‘NoGo’ zones) for oil and gas exploration, increasing the exploitable area to 99% from the earlier 100,000 sqm.
  6. Global Recognition: The Gati Shakti plan was showcased at international forums like the UN Economic and Social Commission for Asia Pacific conference and the G20 meeting in Delhi, highlighting its innovative approach to infrastructure planning.

Broader Impact:

The PM Gati Shakti National Master Plan is a cornerstone in India’s infrastructure development strategy. It not only aims to minimize disruptions and ensure timely completion of projects but also significantly cuts logistics costs. This reduction in logistics costs is expected to lower the overall logistics cost to GDP ratio from 14% to 8%, marking a substantial efficiency improvement since the inception of the Modi government.

The integration of multiple ministries, including railways, roads and highways, petroleum & gas, and others, under this plan, is seen as a game-changer for the industry. It is expected to greatly enhance the scale and speed of infrastructure development, aligning with the vision of national development.

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