11 multi-modal logistics parks to come up in phase-II of Bharatmala Pariyojana

The Centre under, the second phase of the Bharatmala Pariyojana, is looking to set up a multimodal logistics park in 11 newly identified locations across the nation, taking the total number of such facilities in the country to 53.

In the 1st Phase of Bharatmala, the government already planned 35 MMLPs of which the first ones will come up in Nagpur (Maharashtra), Chennai (Tamil Nadu), and Bengaluru (Karnataka). As per senior officials in the transport ministry, the first two in Nagpur and Chennai will be ready by 2024-end.

With a focus on optimizing the efficiency of freight and passenger movement across the country, the program is bridging critical infrastructure gaps through effective interventions such as economic corridors and multi-modal integration through roadways, logistic parks, ports, and ropeways among others.

Locations identified to set up MMLPs under the second phase of the program are Udaipur (Tripura), Tuticorin (Tamil Nadu), Jodhpur (Rajasthan), Gorakhpur (Uttar Pradesh), Siliguri (West Bengal), Ranchi (Jharkhand), Haridwar (Uttarakhand), Bikaner (Rajasthan), Dighi (Maharashtra), Kanpur (Uttar Pradesh), and Bidkin (Maharashtra).

It is a first that India has an integrated plan to develop logistic parks. Through the 35 MMLPs planned under the first phase, the government aims to reduce logistic costs from the current 14-16% of the country’s gross domestic product (GDP) to about 9%. Further, it hopes to create two lakh job opportunities, as the mega logistic parks are likely to trigger the creation of manufacturing or assembling clusters around these facilities, while massively cutting freight transportation costs and time.

To be built under a public-private partnership (PPP model), the government will provide the land and water, electricity, road, and railways connectivity to the MMLPs said a senior official in the know of the matter, who didn’t wish to be named.

One MMLP will be run by one private operator, who will be concessioned for 45 years during which the entire park will have to be operated and maintained. “In two years, the concessionaire will have to complete phase-1 of the project, which is if he is investing ₹900 crores, then a minimum of ₹300 crores (30%) will have to be invested in the first two years for the development of the park,” the official said.

As logistic parks in each state will involve multiple stakeholders, the government has decided that for every MMLP there will be a special purpose vehicle (SPV) having members from the private operators, the concerned state port authority, roadways, and railways, electricity, power utilities and so on. If a state has more than one MMLP, then the SPV can be the same.

Giving an update on the first phase of the program, a senior official from the ministry of road transport and Highway (MoRTH) requesting anonymity said tenders have been floated for three of the 35 projects.

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