Construction engineering company G R Infraprojects has emerged as the highest bidder for constructing the first Multi-Modal Logistics Park (MMLP) of Madhya Pradesh.
The scope of the project includes the development, operation and maintenance of MMLP Indore near Pithampur, in the Dhar district of Madhya Pradesh.
The project will be implemented on a design, build, finance, operate and transfer (DBFOT) basis at an estimated cost of Rs 758.10 crore.
Under the terms of the contract, the concessionaire will complete the project within two years from the Appointed Date and will operate the park for 45 years.
Earlier, in September last year, the National Highways Logistics Management Limited (NHLML) had invited bids for the project. The financial bids were opened on 24 February 2023.
MMLP Indore is part of 35 logistics parks being developed under the first phase of Bharatmala Pariyojana.
Indore is one of the foremost locations selected for creation of an MMLP under this scheme. It is located at the crossroads of western and central India with good connectivity.
The commercial capital of Madhya Pradesh has been the hub of trade and commerce for western India, with a strong presence of industries such as iron and steel, chemicals and machinery.
MoU Signed
An MoU was signed between MP Industrial Development Corporation Limited (MPIDC) and NHLML on 16 September 2021 for the development of MMLP Indore.
The state government has already initiated the process of land acquisition of around 250 hectares of land in Pithampur with an aim to develop a fully integrated MMLP.
This state-of-the-art logistics park will fulfill most of its energy requirement through ‘green energy’ and is expected to generate 10,000 jobs.
Reducing Logistics Cost
The Ministry of Road Transport & Highways (MoRTH) is developing 35 MMLPs at some of the highest freight movement regions in the country.
These MMLPs 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 nations’ road freight movement, the MMLPs will maximise efficiency of goods movements across the country.
The 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 foundation stone of the country’s first MMLP at Jogighopa in Assam was laid in October 2020 and is slated to complete by 2023.
Hub And Spoke Model
By serving as logistics hubs, MMLPs are expected to enable a shift in logistics network from traditional point-to-point to hub and spoke model.
In a hub and spoke model, MMLPs act as centralised hubs for receipt and dispatch of goods to and from smaller locations called spokes.
Goods from companies (spokes) are collected at MMLPs (hub) transported over long distances to destination location through larger trucks/trains. At destination, another hub MMLP receives goods and sends them out to various nearby locations (the spokes) for consumption.
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.