The newly established Integrated Transport & Logistics Authority (ITLA) comes at a time when India’s infrastructure is fast integrating into a multimodal framework, even as doubts linger whether the “Apex” body strengthens GatiShakti or duplicate it?
The ITLA, a special purpose vehicle (SPV) under the Department for Promotion of Industry and Internal Trade (DPIIT) of Ministry of Commerce and Industry, seeks to address the lack of synchronisation among various transport infrastructure modes as PM’s GatiShakti go in full steam.
While outlining the roles and responsibilities, the press statement’s first point was that ITLA will function as an “apex” institution. But naming so does not automatically make it one.
It has rather been designed as an expert arm of DPIIT than as an institution above departmental interests. The biggest limitation is that its ability to improve outcomes will depend on how much influence it can exercise over the ministries and implementing agencies.
Its SPV structure may be useful for operational independence. But if the final word always rests with the concerned ministry, ITLA’s “apex” status becomes largely advisory.
True [reasonable] independence would call for at least a professionally selected, fixed-tenure CEO/Chairperson, instead of a deputation-driven bureaucracy; guaranteed access to transport data and an independent budget, subject to parliamentary and statutory oversight; and a mechanism for resolving any discord between and among stakeholders.
PM GatiShakti already has a Network Planning Group (NPG), which examines major Central infrastructure projects for multimodality, last-mile connectivity and synchronisation.
At the end of August 2026, a total of 396 projects at an estimated cost of ₹18.66 lakh crore had been evaluated through the NPG mechanism; 256 had been sanctioned, and 198 were under implementation, illustrating the scale of the existing planning framework. The ITLA could complement this by examining the wider transport economics of projects.
For instance, before giving approval to a new highway connecting an industrial cluster to a port, ITLA has to review it multi-directionally — whether to improve an existing railway line, develop a multimodal logistics park or strengthen the coastal shipping — to offer a more cost-effective solution.
The proposed ITLA may encounter institutional resistance because Ministries may be reluctant to alter their investment priorities or accept recommendations that conflict with their sector-specific plans.
In the federal structure, State governments may have different priorities, particularly where projects involve land acquisition, connectivity or shared funding. Mostly so, when ‘double engine’ governance structures are not there.
The Railways, road transport, port operators, state governments and urban transport agencies come with their own mandates, priorities and rigid administrative structures; thus making the coordination process a tedious process.
Many infrastructure projects face inordinate delays on rehabilitation needs, environmental approvals and legal disputes, compounding woes in the sector which otherwise has long gestation period. These problems cannot be resolved through technical appraisal or data integration alone.
Divergence in reporting standards, incomplete records, inconsistent definitions and delays in data sharing could affect the reliability of ITLA’s analysis.
Finer details regarding the responsibilities vis-à-vis NPG and Ministries are yet to emerge, but efforts should be made to establish a single appraisal and data-sharing architecture, and define how inter-agency conflicts will be resolved.
Without these guardrails or/and political backing, an authority conceived to dismantle institutional silos could end up creating another, struggling to secure compliance with its recommendations.
New direction
Nevertheless, ITLA is an attempt to give PM GatiShakti a new institutional direction because coordinating infrastructure development and optimising the economics of the entire transport network form bedrock of multimodal network.
The proposed ITLA is expected to steer the digital infrastructure-planning framework into better investment decisions, multimodal connectivity and lower logistics costs.
According to the National Council for Applied Economic Research, India’s logistics cost was estimated to be 7.97% of GDP during 2023-24, hence a modest gain in the efficiency of freight movement can release substantial economic value.
ITLA cannot reduce freight costs but can help in eliminating infrastructure gaps, improving modal integration and cutting freight delays; while the potential benefits could extend across farmland, manufacturing, exports and domestic trade.
PM GatiShakti’s geospatial platform allows planners to examine infrastructure assets, economic centres and connectivity gaps, while
ITLA’s proposed National Transport Data Repository (NTDR) could add another dimension by integrating transport and logistics data from FASTag, GSTN e-way bills, Vahan, GPS-based systems and urban traffic management systems. This would enable freight-flow and origin-destination analysis.
Breaking the Ministry-silo framework, the ITLA will prepare a National Transport Master Plan with a horizon of at least 10 years, wherein transport investments would increasingly be evaluated not merely by the asset they create, but by how the asset fits into the national freight and passenger network.
Logistics dividend
Having made progress through PM GatiShakti and the National Logistics Policy, including digital integration through the Unified Logistics Interface Platform; it is now time for ITLA to add an institutional layer for long-term physical infrastructure planning.
The proposed NTDR could allow the government to analyse freight flows and origin-destination patterns. Logistics firms, manufacturers and exporters are expected to be major beneficiaries on account of fewer bottlenecks, better modal choices, shorter transit times, improved asset utilisation and greater predictability.
More freight could shift to economically viable alternatives such as rail, coastal shipping and inland waterways, reducing excessive reliance on road transport.
Ensuring a wider economic multiplier, a unified command centre could lower logistics costs as well as improve the competitiveness of Indian manufacturing, agriculture and exports.
They make geographically distant production centres more commercially viable, strengthen the government’s objective of creating integrated national supply chains.
Better use of public capital
ITLA has been entrusted with the responsibility for the technical appraisal of Central transport infrastructure projects costing ₹500 crore or more, while financial appraisal will remain with existing mechanisms. ITLA will also monitor the implementation and conduct post-project impact assessments.
International arena
There is no clear precedent among major economies for India’s new model, even as the strongest integrated systems tend to give the coordinating institution either statutory powers, control over infrastructure/investment, or a clearly defined system-lead role.
India’s ITLA is different as it is an SPV under DPIIT, with a powerful planning and appraisal mandate but without ownership of the major transport assets.
Economic gains
The combined effect of better project selection — coordinated construction and more efficient use of existing infrastructure — could vastly translate into higher economic gains.
Potential outcomes are there, but not guaranteed benefits — the extent to which businesses and consumers gain will depend on implementation, competition and the extent to which efficiency improvements translate into lower costs.