Indore Gets State’s First Multimodal Logistics Park; Phase 1 to 2025

The commercial capital of Madhya Pradesh, Indore, will soon have its own Multi-Modal Logistics Park (MMLP) as works on the project have been awarded, the Ministry of Roads Transport and Highways (MoRTH) announced on Tuesday evening.

The MMLP project has been awarded to GR Infraprojects Limited and will be developed in three phases for which Phase I completion will take two years, ie by 2025, and is expected to lead to commercial operation.

Indore has a rich ecosystem, fertile soil and a highly skilled workforce. The MMLP at Indore will be developed on an area of ​​255.17 acres near Pithampur in Dhar District.

“The site is strategically located close to the Pithampur industrial area, Garment and Pharma cluster and adjacent to the Indore Tihi-Dahod railway line and the proposed Mhow ring road, 30 km from Indore Airport and Indore city. The total estimated cost of the project is Rs 1,110.58 billion,” the ministry said in a statement.

The project is to be developed in PPP mode (DBFOT) whereby the developer will be appointed with a 45 year concession period to develop and operate the MMLP at an estimated cost of Rs 758.10 crore.

A state-owned special purpose vehicle is formed with National Highways Logistics Management Limited (NHI-ML), Rail Vikas Nigam Limited (RVNL) and Madhya Pradesh Industrial Development Corporation (MPIDC).

“The SPV will provide land for the MMLP, external rails, road links, and water and power supplies, etc. The MMLP will be provided with a four-lane approach from the Mhow-Neemach four-lane state road and a long rail siding -6.5km from Sagore railway station,” the ministry added.

The MMLP will carry 12.79 million tonnes (MMT) of cargo over a 45-year horizon, giving a huge boost to industrial zones in the Ujjain, Dewas, Dhar, Pithampur, Khandwa and Barwani catchment areas.

It will also create many job opportunities and boost economic development in the region.

As a result of the Logistics Efficiency Enhancement Program (LEEP) study, MoRTH is developing multimodal logistics parks in 35 strategic locations across the country under the Bharatmala Pariyojana in partnership with other line ministries and state governments.

MMLP is a key solution to reducing logistics costs as a percentage of GDP on par with developed countries, the ministry said.

These parks are an integrated facility where all activities related to logistics and goods distribution can be carried out for both national and international transit across multiple modes of transport.

It was previously reported that while the Cabinet Committee on Economic Affairs (CCEA) mandated MoRTH to develop 35 MMLPs across the country in October 2017, land has so far been identified for 13 of them, including Indore. For the remaining 22 locations, the respective state governments have yet to identify the country, the ministry said.

In a statement in Lok Sabha, MoRTH said the lands have been identified for Mumbai, Pune, Nagpur, Nasik in Maharashtra; Hyderabad at Telangana; Bangalore in Karnataka; Anantapur in Andhra Pradesh; Chennai and Coimbatore in Tamil Nadu; Indore in Madhya Pradesh; Patna in Bihar; Guwahati in Assam; and Jammu in Jammu and Kashmir.


MMLPs reduce transportation costs by enabling a seamless shift from road to rail and vice versa, transshipment costs due to the presence of world-class modern and mechanized transshipment infrastructure, and secondary freight costs by co-locating container yards, warehouses, silos, cold stores, and value-added services as well custom facilities.

MMLPs also benefit from economies of scale through the creation of a shared infrastructure and due to the availability of more options for choosing competitive and reliable logistics providers.

The project will improve logistics efficiency and multi-modal connectivity to improve efficiency and seamless movement of goods as envisioned by PM Gati Shakti.

The development of MMLP will create employment opportunities and encourage the growth of industrial activities.

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