The Government will award five more multimodal logistics parks (MMLPs) in FY 2023-24.
The information was provided to the Parliamentary Standing Committee on Transport, Tourism and Culture which presented its report on Demands for Grants of Ministry of Road Transport and Highways for the next fiscal.
The Ministry of Road Transport & Highways (MoRTH) is developing 35 MMLPs at some of the highest freight movement regions in the country in order to enhance logistics efficiency across the country.
Out of these 35 MMLPs, 15 are prioritised for award by FY 2024-25 under Phase-I of Bharatmala Pariyojana.
These MMLPs have been planned for development under PM Gati Shakti National Master Plan on PPP mode.
Within these 15 MMLPs, the MMLP at Jogighopa in Assam is currently under development with total cost of Rs 694 crore and will become operational in FY 2023-24. Jetty work for the MMLP at Assam has been awarded separately and that work shall also be completed in 2023-24.
FY 2022-23
During the ongoing fiscal (FY 2022-23), the Ministry has planned to award four MMLPs.
- In November 2022, the Road Transport Ministry awarded Reliance Industries (RIL) the contract for setting up the MMLP near Chennai at a total cost of Rs. 1,424 crore.
- Indore MMLP has also been awarded to Construction engineering company G R Infraprojects.
The project will be implemented on a design, build, finance, operate and transfer (DBFOT) basis wherein the concessionaire will develop and operate the MMLP at an estimated cost of Rs 1,110.58 crore.
- Bids for MMLPs at Bengaluru and Nagpur are in process and are expected to be completed by the end of FY23.
- The bid for Bengaluru MMLP to be built in Muddalinganahalli in rural Bengaluru bid had to be re-floated as a bidder was disqualified, leaving a single bidder scenario. Hence, to avoid any controversy, a fresh bid had to be floated in December 2022.
FY 2023-24
- The Ministry will award five more multimodal logistics parks in FY 2023-24 which includes Pune, Anantapur, Coimbatore, Hyderabad and Jammu.
The committee in its report has recommended that the Ministry may come up with a clear targeted timeline for awarding the remaining 20 MMLPs. Further, it has asked for a robust monitoring framework to ensure the timely completion of the development of MMLPs.
Reducing Logistics Cost
MMLP is an integrated facility within which all activities relating to logistics and the distribution of goods, both for national and international transit can be carried out across multiple modes of transport.
These mega establishments are targeted to reduce logistics costs to 8-9 per cent of the gross domestic product (GDP). Currently, logistics account for 14 per cent of GDP-making India far less competitive on the global stage.
Catering to 50 per cent of nation’s road freight movement, the MMLPs will maximise efficiency of goods movements across the country.
The National Highways Logistics Management Limited (NHLML), which is a 100 per cent owned subsidiary of the National Highway Authority of India (NHAI) is the nodal agency for implementing the MMLP projects.
The MMLPs equipped with inter-modal facilities for freight handling, warehouses, cold storages, custom bonded area will provide one stop solution and reduce transportation costs, inventory handling costs and substantially resolve inefficiencies present in the logistics ecosystem.