Daily Current Affairs : 1-May-2024
The Railway Ministry of India is set to amplify its Gati Shakti Cargo Terminals initiative. This expansion aims to provide an extra 200 terminals to corporate entities and freight operators. The initiative has been a part of the authorities’ attempt to enhance logistics, lessen prices, and enhance the economic system. Here’s a study how this expansion suits into India’s broader infrastructure plans.
Success of the Initial Terminals
The Gati Shakti Cargo Terminals initiative started out with the introduction of 100 terminals in the Union Budget of 2022-23. Out of those, 77 terminals are already operational. These terminals are part of the bigger Gati Shakti scheme, released in 2021, which makes a speciality of improving infrastructure, specially for rail-based totally supply chains. The aim is to boost rail freight volumes, enhance connectivity, and increase the efficiency of logistics systems throughout the country. The early success of these 100 terminals has encouraged the government to expand the initiative by including another 200 terminals.
Key Objectives of the Expansion
The growth of the Gati Shakti Cargo Terminals initiative is designed to meet several key objectives:
- Increase Rail Freight Volume: By adding more terminals, the initiative aims to encourage more businesses to use rail transport for freight, thus reducing road congestion and improving the efficiency of supply chains.
- Boost Revenue for Railways: With more terminals, the Indian Railways will be able to handle a higher volume of freight, which will generate additional revenue for the sector.
- Improve Connectivity: Expanding the network of cargo terminals will improve access to remote and underserved regions, enhancing trade and logistics.
The Gati Shakti Scheme and Its Impact
The Gati Shakti scheme is a national master plan designed to bring together multiple infrastructure projects under one coordinated framework. It focuses on improving the logistics sector by:
- Reducing Logistics Costs: By integrating infrastructure planning and improving connectivity, the Gati Shakti scheme seeks to cut down on logistics costs.
- Boosting Trade: The improved infrastructure will help businesses transport goods more efficiently, thus boosting both domestic and international trade.
- Enhancing Infrastructure: The plan focuses on developing modern infrastructure that supports faster movement of goods across India.
Important Points:
- Expansion of Gati Shakti Cargo Terminals: The Railway Ministry plans to add 200 more terminals to the existing network, aimed at boosting rail-based supply chains and freight operations.
- Success of Initial Terminals: The first 100 terminals, introduced in the Union Budget of 2022-23, are already operational, with 77 functioning successfully.
- Objectives of Expansion:
- Increase Rail Freight Volume: Encouraging businesses to shift more freight to rail, reducing road congestion.
- Boost Revenue for Railways: More terminals will lead to higher freight volumes, generating additional revenue for the rail sector.
- Improve Connectivity: Expansion will enhance access to remote and underserved areas, supporting better trade and logistics.
- The Gati Shakti Scheme: Launched in 2021, it is a national master plan to streamline infrastructure projects, reduce logistics costs, and enhance connectivity.
- Impact of the Gati Shakti Scheme:
- Reduce Logistics Costs: Integration of infrastructure planning aims to lower costs for businesses.
- Boost Trade: Better infrastructure will facilitate smoother transportation, increasing both domestic and international trade.
- Enhance Infrastructure: Focuses on modernizing infrastructure to speed up the movement of goods.
- Overall Goal: The expansion and Gati Shakti scheme aim to make India’s logistics system more efficient, cost-effective, and globally competitive.
Why In News
The Railway Ministry plans to expand its Gati Shakti Cargo Terminals initiative, aiming to offer an additional 200 terminals to corporate entities and freight operators, significantly enhancing the capacity of India’s rail-based logistics network and supporting the growth of trade and industrial activity across the country.
MCQs about Gati Shakti Cargo Terminals
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What is the primary goal of expanding the Gati Shakti Cargo Terminals initiative?
A. To reduce rail passenger fares
B. To provide additional terminals to corporate entities and freight operators
C. To privatize the railways
D. To improve air freight services
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How many terminals were initially announced in the Union Budget of 2022-23 as part of the Gati Shakti Cargo Terminals initiative?
A. 50
B. 100
C. 200
D. 77
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What is one of the main objectives of the Gati Shakti scheme?
A. To increase road freight volumes
B. To reduce logistics costs and improve connectivity
C. To focus only on air transport
D. To privatize the Indian Railways
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How will the expansion of the Gati Shakti Cargo Terminals initiative benefit the Indian Railways?
A. It will reduce the cost of passenger trains
B. It will generate additional revenue by increasing freight volumes
C. It will replace rail freight with road transport
D. It will increase the number of high-speed trains
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