India is planning to set up a federal Transport Planning Authority to coordinate infrastructure projects and reduce wasteful spending, according to sources familiar with the matter. The new body will work closely with Prime Minister Narendra Modi’s office and oversee development across aviation, highways, shipping, rail, and urban planning.
The proposed authority aims to align multiple ministries, improve project viability, and prevent delays, said the sources, who requested anonymity due to rules restricting public comments. Cabinet approval for the proposal is expected within three to six months.
India, the world’s most populous nation, is investing tens of billions of dollars in infrastructure as part of its goal to become a developed nation by 2047. However, these investments have sometimes led to costly inefficiencies, including empty airport terminals and underused metro systems. The government hopes the new authority will address these challenges, drawing inspiration from transport bodies such as Seoul’s Metropolitan Transport Commission and London’s Transport for London, which coordinate projects, reduce duplication, and match infrastructure with actual demand.
Streamlining Planning
Despite ongoing investments in highways, airports, rail lines, and ports, Indian departments have largely operated in silos, leading to disconnected systems. A previous attempt to streamline planning — the PM Gati Shakti initiative launched in 2021 — involved 58 departments and 36 states and Union territories but was limited to project approvals and fell short of its objectives, according to sources.
The new authority will prioritize viable projects and accelerate approvals, which are currently vetted by multiple departments before being cleared by the federal finance ministry.
Current infrastructure challenges highlight the need for better coordination. Of India’s 140 airports, 12 terminals recorded no passengers between December and March, while more than a third handled fewer than five daily flights last year. Mumbai’s second airport, inaugurated this month, took 25 years from planning to completion and lacks connectivity with metro or other transport networks.
Metro systems across the country are also underperforming. Mumbai’s ridership is 30% of its target, Bengaluru’s at 6%, and outside New Delhi and Kolkata, most metro networks operate at less than 20% of projected capacity. The national auditor has repeatedly criticized projects built years or even decades before actual demand materialized.
The proposed Transport Planning Authority is expected to serve as a central coordinating body, streamlining infrastructure planning and ensuring that India’s ambitious development goals are matched with efficient, well-utilized projects.
