On target: auctioning of 6-7 multimodal logistics parks

India is planning to tender 6-7 Multimodal Logistic Parks or MMLPs in the next financial year (2023-24) to significantly improve its logistic infrastructure. Another 14-15 connectivity projects for critical infrastructure gaps for road-based port connectivity are to be developed in the coming year.

According to senior officials at the Departments of Roads, Transport and Highways, 6-7 MMLPs will be tendered over the next fiscal year, each attracting private investment of ₹700-1,000 crore.

“Approximately 200km of critical infrastructure gap projects for road port connectivity will be implemented in FY2023-24,” a senior government official told ET, adding that these are being implemented as part of India’s broader vision of reducing logistics costs.

Under the National Logistics Policy launched in September 2022, India aims to reduce logistics from 13-14% of the country’s gross domestic product (GDP) to a single digit figure.

This will be done through improved road and rail connectivity and the establishment of multimodal hubs to enable seamless movement of goods and commuters between modes of transport.

In FY23, India was looking to tender four MMLPs, of which parks have been awarded so far in Chennai and Indore, and the third in Bengaluru is expected by the end of March 2023. Reliance Industries Ltd (RIL) secured the Chennai MMLP as an investment of ₹783 crore while GR Infraprojects will develop the Indore MMLP for 758 crore.

The parks currently being tendered rank high in the Logistics Efficiency Enhancement Program (LEEP) index for their access to commercial hubs.

Under PM Gati Shakti’s master plan, 100 critical infrastructure gap projects have been prioritized for development in FY2023-24 and 75,000 crore have been allocated for them.

These road projects are part of an already identified port connectivity pipeline of 298 projects worth approximately 2 lakh crore.

According to official figures, there are 161 road and 132 rail connection projects. Of these, 60 road and 42 railway projects were identified as critical infrastructure gap projects after three meetings of the empowered group of secretaries led by Cabinet Secretary Rajiv Gauba last November.

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