• Three public sector entities under different ministries of the central government have joined hands for the development of multi-modal logistics parks (MMLPs) under Bharatmala Pariyojana.

• The objective is to centralise freight consolidation and reduce logistics cost from 14 per cent to less than 10 per cent of GDP at par with international standards.

• A tripartite agreement was signed between the National Highways Logistics Management Limited (NHLML), Inland Waterways Authority of India (IWAI) and Rail Vikas Nigam Limited (RVNL) for swift development of the modern multi-modal logistics park (MMLP) under Bharatmala Pariyojana. 

• NHLML is a special purpose vehicle of the National Highway Authority (NHAI), while IWAI is a statutory authority under the ministry of ports, shipping and waterways. RVNL is a wholly-owned public sector enterprise under the railway ministry. 

Purpose of MMLPs

• Developed under a ‘hub & spoke’ model, the MMLP will integrate multiple modes of freight transport through highways, railways and inland waterways. 

• The agreement underlines the cooperation and collaboration model between the three bodies in order to achieve efficiency in logistics movement within the country.

• MMLP will be a freight handling facility with rail and road accessibility, comprising of container terminals, cargo terminals (bulk, break-bulk), warehouses, cold storage, facilities for mechanised material handling and value-added services such as customs clearance with bonded storage yards, quarantine zones, testing facilities and warehousing management services, etc along with other associated facilities. 

• The MMLP project is poised to develop state-of-the-art large scale warehousing facility for different types of commodities, to become a one-stop solution for all services related to cargo movement like warehousing, custom clearance, parking, maintenance of trucks, etc.

• The MMLPs will focus on a technology driven implementation for a state-of-the-art freight management system. Many value added services like packaging, repackaging and labelling will be available in these projects.

Bharatmala Pariyojana

• Bharatmala Pariyojana is an umbrella programme for the highways sector that focuses on optimising efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps through effective interventions.

• The Cabinet Committee on Economic Affairs (CCEA) approved the proposal for investment approval for phase-1 of Bharatmala Pariyojana in October 2017 with an aggregate length of about 34,800 km (including 10,000 km residual NHDP stretches). 

• Total investment of Rs 6,92,324 crore is envisaged under Bharatmala Pariyojana phase-1 and other NHs/road development schemes. 

• This includes investment of Rs 5,35,000 crore for Bharatmala Pariyojana phase-1 and projects under NHDP.

The phase-1 of Bharatmala Pariyojana includes development of:

• About 9,000 km of economic corridors.

• About 6,000 km of inter-corridor and feeder roads.

• About 5,000 km of national corridor efficiency improvements.

• About 2,000 km of border and international connectivity roads to promote trade with Nepal, Bhutan, Bangladesh and Myanmar.

• About 2,000 km of coastal and port connectivity roads.

• About 800 km of expressways. 

• About 10,000 km of roads under National Highways Development Project (NHDP).

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