MP: NHAI Floats Tender For Setting Up Multi-Modal Logistics Park In Indore Under Bharatmala

The National Highways Logistics Management Limited (NHLML) invited bids on 30 September for constructing the Multi Modal Logistics Park (MMLP) Indore. The project is slated to come up near Pithampur in the Dhar District of Madhya Pradesh.

The project will be executed on a design, build, finance, operate and transfer (DBFOT) basis at an estimated cost of Rs 758.10 crore.

MMLP Indore is part of 35 logistics parks being developed under the first phase of Bharatmala Pariyojana.

Indore is one of the foremost locations selected for creation of an MMLP under this scheme. It is located at the crossroads of western and central India with good connectivity.

The commercial capital of Madhya Pradesh has been the hub of trade and commerce for western India, with a strong presence of industries such as iron and steel, chemicals and machinery.

MoU Signed

An MoU was signed between MP Industrial Development Corporation Limited (MPIDC) and NHLML on 16 September 2021 for the development of MMLP Indore.

The state government has already initiated the process of land acquisition of around 250 hectares of land in Pithampur with an aim to develop a fully integrated MMLP.

This state-of-the-art logistics park will fulfil most of its energy requirement through ‘green energy’ and is expected to generate 10,000 jobs.

The concessionaire to be selected through competitive bidding will build, finance and operate the facility during the concession period, and then the asset shall be transferred to the public sector authority.

Reducing Logistics Cost

The Ministry of Road Transport & Highways (MoRTH), under the first phase of Bharatmala Pariyojana, will develop 35 MMLPs at some of the highest freight movement regions in the country.

These MMLPs are targeted to reduce logistics costs to less than 10 per cent of the gross domestic product (GDP). Currently, logistics account for 14 per cent of GDP — making India far less competitive on the global stage.

The MMLPs, with various facilities for inter-modal connectivity and inter-modal freight handling, warehouses, cold storages, custom bonded area and support facilities, provide one stop solution and reduce transportation costs, inventory handling costs and substantially resolve inefficiencies present in the logistics ecosystem.

By serving as logistics hubs, MMLPs are expected to enable a shift in logistics network from traditional point to point to hub and spoke model.

In a hub and spoke model, MMLPs act as centralised hubs for receipt and dispatch of goods to and from smaller locations called spokes.

Goods from companies (spokes) are collected at MMLPs (hub) transported over long distances to destination location through larger trucks/trains. At destination, another hub MMLP receives goods and sends them out to various nearby locations (the spokes) for consumption.

The NHLML, which is a 100 per cent owned subsidiary of the National Highway Authority of India (NHAI) is the nodal agency for implementing the MMLP projects.

The foundation stone of the country's first MMLP at Jogighopa in Assam was laid in October 2020 and is slated to be completed by 2023.

Bids have been invited for MMLPs in Bengaluru, Chennai and Nagpur. The MMLP in Chennai and Nagpur will be ready by 2024-end.