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Govt gives green signal to 16 NIP projects in the logistics infrastructure sector

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The Indian investment grid (IIG) via a tweet on Thursday introduced Logistics Infrastructure Projects under the National Infrastructure Pipeline (NIP). Aimed towards building a new India, a total of 16 NIP projects in the logistics infrastructure sector has been approved with a total project cost of USD 5.35 Bn. It is believed that these logistics infrastructure projects will ensure a seamless flow of cargo across the production value chain.

What is the National Infrastructure Pipeline?

The National Infrastructure Pipeline (NIP) a first of its kind has been identified by the government of India to provide a world class Infrastructure across the nation and improve the quality of life for all citizens. It is aims to improve project preparation in the country and attract investments into infrastructure.

The NIP which in all consists of 6784 projects captures both greenfield and brownfield projects for investments across all economic and social infrastructure sub-sector on a best effort basis.

NIP at present consists of 1682 projects under development stage for 34 sub sectors with a total capital outlay of near USD 1,455.75 bn.

To draw the NIP, a High-Level Task Force was constituted under the chairmanship of the Secretary, Department of Economic Affairs (DEA), Ministry of Finance. The NIP is considered crucial to make the Prime Ministers vision of $5 trillion economy into reality by FY 2025.

Finance Minister Nirmala Sitharaman in her Budget speech 2019-20 announced that Rs. 100 lakh crores would be invested in infrastructure over the next five years. However, as per the estimated investment value by the NIP special task force it is believed that a total infrastructure investment of INR 111 lakh crore will be invested during the period FY 2020-25.

Out of the total expected capital expenditure of Rs. 111 lakh crore, projects worth Rs 44 lakh crore (40% of NIP) are under implementation, projects worth Rs 33 lakh crore (30%) are at conceptual stage and projects worth Rs 22 lakh crore (20%) are under development. Information regarding project stage are unavailable for projects worth Rs 11 lakh crore (10%).

Sectors such as energy (24%), roads (18%), urban (17%) and railways (12%) amount to around 71% of the projected infrastructure investments in India. The Centre (39%) and States (40%) are expected to have almost equal share in implementing the NIP, followed by the private sector (21%).

The projects under NIP will not only help create opportunities for its citizens but will also promote India on an international level. With the outbreak of the COVID-19, pandemic and companies looking to make a shift from China, India seeks to grab the opportunity and attract more investments.

NIP could be a key factor in doing so, as with the new key development infrastructure project India could offer trust, reliability, potential, strength and ability as our Prime Minister quoted, “The world is looking for a trusted and reliable partner. India offers potential, strength and ability.”

Logistics Infrastructure Projects under NIP

The National Infrastructure Project in lines with the Modi led government’s vision of building New India have 16 projects under the sub-sector Logistics infrastructure in different states of India in order to build a seamless supply chain across the nation. The project under the same are as follow:

MMLH and MMTH at Greater Noida Development Project:  The Multi modal logistics and the multi modal transport hub are one of the key early bird projects identified under Dadri-Noida-Ghaziabad Investment Region (DNGIR), in Uttar Pradesh (UP). The projects combined make for a total investment of USD 2.86 bn. The MMLH facility will support Dedicated Freight Corridor (DFC) towards achieving its targeted potential by providing an integrated logistic facility for efficient storage/ transitioning of goods to/from the UP sub-region of NCR. While the Under MMTH, a railway station is proposed at Boraki that shall be developed as a transport hub with a state-of-art railway terminus further supplemented by an Interstate Bus Terminus (ISBT) and a Mass Rapid Transit System (MRTS) station alongside commercial activity to optimally capture the strategic location where various transport modes congregate.

IMLH Nangal Chaudhary development Project: The Nangal Chaudhary Integrated Multimodal Logistics Hub (IMLH) Project in the state of Haryana is envisaged to function as a dry port supplementing not just the storage, aggregation and export/import of the industrial freight in the region but also value addition services that shall allow for finishing of goods, packing, repacking, etc. within the facility alongside commercial space to host the freight companies within the campus. The total investment for the project is USD 786.38mn

Kharagpur and Andal new Logistics Parks Development Project:  The project which is underconceptualization was estimated to start on April 1 2020 (there is no update on the same as per the IIG website) in the state of West Bengal. The completion date of the USD 474.67mn project is March 31st 2024.   

Sanand Modal Logistics Park project: The project is estimated to start from May 1, 2022 and be completed by May 1 2024 in the state of Gujarat. The project involves the construction of a logistics park. It includes the construction of industrial and manufacturing centers of petrochemicals, pharmaceuticals, textiles, dairy product warehouses and related facilities. The total project cost for the same is USD 4332.63mn

Multimodal Logistics Parks Project: The project estimated at USD 406.86mn is at idea stage. It is to be developed in the state of Andhra Pradesh under the Department for Promotion of Industry & Internal Trade.

Port Led MSME Parks Development project: The project under the ministry of shipping is yet to be conceptualized and will be estimated at a total cost of USD 358.04mn

2 Logistic Hubs Development Project: The project under Department for Promotion of Industry & Internal Trade is at the idea stage and is estimated at a total cost of USD 177.53mn. The project is to be developed in the state of Odisha which is a fast-emerging manufacturing hub of the East in India through its industry-friendly environment and policy framework.

Wardha Dry Port Development Project: The Project which is under implementation in the state of Maharashtra was commenced on March 31st 20188 and is estimated to be completed by Jun 30 2022. The project under the Ministry of shipping is estimated at a total cost od USD 63.61mn. The Dry port will provide direct logistic connectivity to the JN Port and decongest the port and capture a wider hinterland for the port’s traffic in Central and Northern India. The project will also boost the industrialization of Vidarbha region since the Industries will come up near these Dry ports. 

Sahibganjh Multimodal Terminal Development Project: The project under implementation in the state of Jharkhand comes under the Ministry of Shipping and is estimated at a total cost of USD 50.99mn. The Multi-Modal terminal at Sahibganj will open up industries of Jharkhand and Bihar to the global market and provide Indo-Nepal cargo connectivity through waterways route. It will play an important role in transportation of domestic coal from the local mines in Rajmahal area to various thermal power plants located along NW-1. Other than coal, stone chips, fertilisers, cement and sugar are other commodities expected to be transported through the terminal.

Jalna Dry Port Development Project: The project estimated at a total cost of USD 44.35mn is under implementation stage in the state of Maharashtra. The project is estimated to be completed by June 30, 2022 and is under the Ministry of Shipping. The development of the project initiated by JNPT is proposed to be constructed over an area of 180 hectares in phased development. The project would have the necessary facilities as one-stop shop for the EXIM based industries such as customs clearance facilities, Container Freight Station, Warehousing Space, Cold Storage, Liquid Storage, truck terminals etc.

Nashik Dry Port Development Project: First proposed in November 2016 the dry port which is still under development will be developed at Niphad in Nashik district of Maharashtra. The project under the ministry of shipping will be rail based dry port that is estimated at a total cost USD 31.87mn

Varanasi Freight village development Project: The project estimated at a value of USD 22.38 mn which is under development was approved by the Ministry of Shipping in Varanasi, Uttar Pradesh adjoining the Inland Waterways Terminal on River Ganga. The freight village which will be developed by the Inland Waterways Authority of India will serve as a cargo hub, and a centre for aggregation and value addition. Further, it will provide support to stimulate development of a professional logistics industry in Varanasi.

Marine Dry Dock extension Project: The project which is under implementation stage is estimated to be completed by august 1, 2021. Under the Ministry of Shipping the project will be developed in Andaman and Nicobar and will have a total project cost of USD 16.82 mn. The scope of work was to extend the existing dock by 90 meters in length to accommodate more and bigger vessels. This facility was to double the existing capacity of ship repair facilities at Port Blair and generate employment opportunities and enhance the income of islanders.

Multi-Modal transit Hub Development Project:   The project estimated at a total cost of USD 11.67mn is under the Ministry of housing and Urban Affairs. To be developed in the state of Madhya Pradesh the project is still under development phase with Feasibility Study in Progress.

Haldia Multimodal Terminal Development Project:  The project which is still under development is is estimated at a total cost of USD 6.65 mn and is to be developed in the state of West Bengal under the Ministry if Shipping. The terminal which will be built as a river port with 61 acres of landwill have facilities including berthing space for four vessels, stockyard for storing, belt conveyer system with fixed hoppers, barge loader, shore protection works, road ramps and parking area and other terminal building. It will become a major hub for the transportation of goods in West Bengal and north-east India

Varanasi Multimodal Terminal Development Project: The project that will be developed in Varanasi in the state of Uttar Pradesh under the ministry of Shipping is estimated to cost a total of USD 3.12mn.  The project is under development phase and Feasibility Study is in Progress.

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