The Gati-Shakti Yojana is a government scheme in India that aims to improve connectivity in rural and remote areas of the country. The scheme aims to provide last-mile connectivity to households, schools, hospitals, and other essential services in these areas, through the use of electric vehicles (EVs). The scheme targets to deploy 5,000 electric buses and 30,000 electric three-wheelers in the first phase.
For the successful implementation of the Gati-Shakti Yojana, it is crucial that there is a strong coordination between the government and the private sector. The government has to play a leading role in providing the necessary infrastructure and policy support to enable the private sector to participate in the scheme. The private sector, on the other hand, has to take the lead in providing the required technology, financing, and operational capabilities to implement the scheme.
Infrastructure:
Government: The government needs to provide the necessary infrastructure such as charging stations and maintenance facilities for the EVs. The government can also provide subsidies and incentives to encourage private sector investment in the infrastructure.
Private sector: The private sector can then invest in building and operating these charging stations and facilities. For example, in 2019, the government of Andhra Pradesh announced plans to set up 1,000 EV charging stations across the state, with private companies such as Tata Power and Fortum India investing in building and operating these charging stations.
Policy support:
Government: The government needs to provide a conducive policy environment for the private sector to participate in the scheme. This includes providing tax incentives and subsidies for the purchase and operation of EVs, and simplifying the registration and licensing process for the EVs.
Private sector: The private sector can then take advantage of these policies to invest in the EV market. For example, in 2020, the Indian government announced a subsidy of INR 30,000 for the purchase of electric two-wheelers, which led to an increase in private sector investment in the EV market.
Technology:
Government: The government can provide subsidies and incentives to encourage private sector investment in the technology.
Private sector: The private sector needs to provide the necessary technology for the EVs, including the vehicles themselves and the charging infrastructure. For example, in 2021, Mahindra Electric, a leading Indian EV manufacturer, partnered with the government of Andhra Pradesh to supply electric buses for the Gati-Shakti Yojana.
Financing:
Government: The government can provide subsidies and incentives to encourage private sector investment in the financing.
Private sector: The private sector can provide the financing for the purchase and operation of the EVs. For example, in 2022, the Indian government announced a INR 10,000 crore fund to provide low-cost financing for the purchase of EVs, which was availed by several private sector companies.
Operational capabilities:
Government: The government can provide subsidies and incentives to encourage private sector investment in the operational capabilities.
Private sector: The private sector needs to provide the operational capabilities for the scheme, including the management of the charging stations and the maintenance of the EVs. For example, in 2023, Ola Electric, a leading EV fleet operator in India, partnered with the government of Andhra Pradesh to operate electric buses under the Gati-Shakti Yojana.
Conclusion:
In conclusion, the Gati-Shakti Yojana is a scheme that requires a strong coordination between the government and the private sector to achieve its goals of connectivity in rural and remote areas. The government provides the necessary infrastructure and policy support, while the private sector provides the technology, financing, and operational capabilities. Through this coordination, the government and private sector can work together to ensure the successful implementation of the scheme. Real-world examples of this coordination can be seen in partnerships between the government and private companies such as Tata Power, Fortum India, Mahindra Electric, Ola Electric and the Indian government's policy of providing subsidies and incentives for the infrastructure and technology, which has led to an increase in private sector investment in the EV market. It's important to note that, the successful implementation of the scheme also requires effective monitoring and evaluation of the scheme to ensure that it is meeting its intended goals and addressing the needs of the targeted communities.
