Lok Sabha Question No. 3719 (UNSTARRED), answered on 2021-03-18
Subject: Development of MMLPs under Bharatmala Pariyojana
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Arjunlal Meena, P.P. Chaudhary, Kaushal Kishore

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## be pleased  to state:

- (a) the number of projects planned and sanctioned under the Bharatmala Pariyojana in the countryl
- (b) the details of Multi-Modal Logistics Parks (MMLPS) proposed under the Pariyojana;
- (c)  the extent to which the construction  of the MMLPs is likely to ease logistics problem in the countryl
- (d) whether any study has been done to identify the locations and propose construction  of the said MMLPs;
- (e) if  sor the details including methodology and findings thereof;
- (0 the details of locations identified for MMLPs along with the criteria adopted for selecting the said locationsl and
- (g) the funds allocated and spent on MMLPs till now?

## ANSWER

## THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS

(sHRr NrTrN JATRAM GADKARI)

- (a) The Bharatmala Pariyojana, an umbrella program of
- Government of lndia. for the National Highway sectorr was approved by the Gabinet Gommittee on Economic Affairs on

## GOVERNMENT  OF INDIA

## MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA UNSTARRED  QUESTION NO. 37,19

ANSWERED ON { 8rH MARGH, 2O2',

## DEVELOPMENT  OF MMLPs UNDER BHARATMALA PARIYOJANA

3719. SHRI ARJUN LAL MEENA:

SHRI P.P. CHAUDHARY:

SHRI KAUSHAL KISHORE:

## Will the Minister of ROAD TRANSPORT  AND HIGHWAYS

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October 26, 2017, spanning over a period of five years (201720221. The objective of the program is to optimise the efficiency of freight &  passenger movement across the country by bridging critical infrastructure  Gaps and the implementation  of the Pariyojana is being undertaken  by Ministry of Road rransport & Highways through its various implementing agencies. A total length of about Z4TBOO  km is being taken up under the Phase-l of Bharatmala  Pariyojana. rn addition, Phase  -  I also includes about { orooo km of residual works of National Highway Development Project (NHDP). There program is divided in to six components  to be taken up for implementation:

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|        | Name of nt& Details                     | Description                                     | l- 1 i I 'Total No. _t --   | ; t I planned (km) I (km)   | i ro*r, renoth ;^ : _ I nart of ll1l :i t; I Phase I   | i ri""n i cial ,outlay, lforl I ,rNp I (rNR i   |
|--------|-----------------------------------------|-------------------------------------------------|-----------------------------|-----------------------------|--------------------------------------------------------|-------------------------------------------------|
|        | lment I Develop                         | importance I toi 25o/oof'. ,ldentified ,highway |                             | 26r2OO                      | 9,OOO                                                  | 12OrOO o                                        |
| i lz I | ifeeder iroads t, jNational ,Highway ,G | hways                                           |                             |                             |                                                        |                                                 |

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|-----------------------------------|--------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|-----------------------------------------------------------------------------|------------------------------------------------|
|                                   | ,*"r,""r, j lGorridorsi iment I                        | o"r"lop ment of ring- roads and by- passes / elevated corridors in addition to lane expansio n to ease congesti on on identified choke Points along National Highway= which imPact the Losistic" Y Develop | 'i 1 1 i i " ' i : ' i i) Ring' Roads: r2g I Gities; ldentifie rd Ghoke, points: 125l; : Ghoke i poi,rt= iwhere I 'intervent' ion ior"rrn"o= i be. _: ii) No' of Multi- 1"1":_ efficienc Logistics 'Parks: i 35 | nrrn !                            | 5,OOO I 1 i I I I I I I 1 1 I 1 I I ls, I I i I 1 I I I I i 1 i I I I I I i | 1' ,i ll ii Ir ;t i, oo,ool l'i i1 ii ll li ii |
|                                   | -l ,Border Roads Border 'identified to be,poads: the25 | along                                                                                                                                                                                                      | ;                                                                                                                                                                                                               | Border lRoads: 3,300 vi           | 2,000 I i 12, I i                                                           |                                                |

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| vity :border to lnternati Roads facilitate EXIM onal trade with Roads: lneighbouring l2O countries such irc Nepal, Bhutan, lBangladesh &   | lnternati onal Roads: 1,91O   |       |            |
|--------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|-------|------------|
| j boostt andr ndia to the ron nd Port Myanmar. tLttt to facilitate6S EXIM trade with an emphasis to                                        | 2,000                         | 2,OOO | ,2O;OOO. l |
| a E -r-rwsy-r l sections ot r whereinl a--u=-t e traffici I ! Express                                                                      | {,9OO                         | 8OO   | 4O,OOO     |

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| F_+----__-                             | ;aailv-                   | *_l     |          |
|----------------------------------------|---------------------------|---------|----------|
| i iBalance i lnoao le.lworr I lunder I | I lSelf- I lexplanatory I | l O,OOO | 150.OO o |

- (b) Total locations approved by CCEA for development of Multi-modal Logistics Parks: 35. The List of identified MMLP projects is enclosed as Annexure l.
- (c), (d) & (e) The Ministry of Road Transport and Highways undertook a Logistics Efficiency lmprovement  Program (LEEP) in 2017, through NHAI to identify the shortcomings of the exiting road transportation and logistics framework along the National Highways. The study was undertaken across multiple logistics related themes, which include, unfavourable inter-modal mix, inefficient fleet  mix, under-developed material handling infrastructure, Under-developed  Road Infrastructure  and Procedural  complexities. The study also assessed socio-ecological impact of existing road-based logistics and transportation. A detailed Goncept Note on the LEEP Study undertaken by MoRT&H is enclosed herewith as Annexure ll.

As part of the LEEP Study, it is identified that the cost of Logistics  in lndia is { 3-14 per cent of GDP as opposed to 7-8 per cent in developed economies like Japan, USA, Germany and Singapore. Further, this proportion  has significantly increased over last  {5  years, indicative of  structural inefficiencies in logistics.  The intent behind development of these MMLPs is to bring the cost of logistics below 1O"/o ot GDP by 2025 and to reduce the upto 10o/o in transportation cost for the top {5 nodes.

The detailed Methodology  and findings of the LEEP $tudy have been enumerated  in section lto. 2 (two), 3 (three), 5 (five) and 6  (six) of  the enclosed LEEP Study Report (Annexure ll).

(f) The MMLPs under Bharatmala  Pariyoiana are conceived on a  3Hub  & Spoke' Mode! and through a thorough Origin & Destination Analysis of  cargo flow across the National Highways Grid of the Gountry, spread across a variety of

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lndustrial, Export-lmport (EXIM), Manufacturing  and Gonsumer Hubs of the country. The above parameters were studied during the LEEP Study and the 35 Locations have been derived basis the rationate. List of MMLPs enclosed as Annexure l.

- (g) An overlay of INR IOO,OOO Grores is approved by the GGEA for the National Gorridor Efficiency lmprovement component of the Bharatmala Pariyojana and the development  of MMLPs is being undertaken  as part of this allocation. So far, MoRT&H has accorded sanctaon of INR 794 Crores towards MMLPs, which may be broken down as below:

| I i { ofAllocation,                                                                                                                                                                  | Fund Sanctioned           | ,i I Expenditure as on Feb 2O21   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|-----------------------------------|
| Gonstruction of first MMLP at Jogighopa, Assam throug-h NHIDGL                                                                                                                       | _ __ _ --_ -_- - - -- 694 | I 23.26                           |
| i --1'- lnitial Grant by MoRT&H | to sNational Highway I Logistics Management Limited (NHLML)', a company incorporated under NHAI by renaming rGochin Port Road Gompany Limited | {oo                       | T | i -]                     |

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## Ministr:f'of Road Transport  and Highways

,{nnaxure  ll  {k)

## List ofLogistics  Parks

| 8r" filo.   | Location                                                     |
|-------------|--------------------------------------------------------------|
| 1           | Glh* NC R (Delili ,G u'! ao-t.Ghaa;bad, F aridabad, Noida)   |
| L           | ldumba (Mumbaimmiai Suburhs JMT Mumbai Pori, Raigad Disttic! |
| 3           | tlorth Gujarat (Ahmedabad and Vadodara)                      |
| 4           | Hyderabad                                                    |
| (           | South Gujaral (Surat and Bharuchi                            |
| 6           | South Punjab (Ludhiana, Sangrur, Paliala)                    |
| 7           | Htortn eunial {Amdbar, Jalandhar, Gurudaspur)                |
| 8           | Jaipur                                                       |
| g           | Bangalore                                                    |
| 10          | Pune                                                         |
| i1          | Vijayawada                                                   |
| 1)          | Ctrennai                                                     |
| IJ          | Nagpur                                                       |
| (T t+       | lndor e                                                      |
| iE lJ.      | Palna                                                        |
| 16          | Kolkata                                                      |
| 17          | Ambaia                                                       |
| 1S          |                                                              |
|             | -+ { 1                                                       |
| 1t L'       | Nasik i                                                      |
| 22          | Gu*ahr1i                                                     |
| IJ          | Kota                                                         |
| 24          |                                                              |
| ,25         | Hisar                                                        |
|             | Visalihapatnant                                              |
| tt          | Bhopal                                                       |
| 28          | Sundaruarh                                                   |
|             | Bhatinda                                                     |
| 30          | Sola.                                                        |
| 31          | Fjrgl                                                        |
| J1          | Raipur                                                       |
| JJ          | Jammu                                                        |
| 34          | Kandla                                                       |
|             | Coch',n                                                      |

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## a.S6  qnH-ffi -& ?TBa.rf  eixrem IutNt$TnV rir  nOnn rnnUspSRT  & lllfill!ryAY$ " rrv' rE Government  oi lndia

## ConceptNote:LogisticsEfficiency

Enhancement  Program  (LEEP) Development  of Multimodal  Logistics Parks

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## 1 Background

Logistics  costs  in tndia are a higher  proportion  of the total value of goods as compared to developed  nations  -13-14%in 20151,  compared to other developed  economies  (7 -g%)1.  Further,  this  proportion  has significantly  increased  over last 15  years' indicative  of structural  inefficiencies  in logistics'  A comparison  across  lndia and USA highlights  the difference  in road freight  cost  per ton  per km (ptpkFthe  cost in lndia (adjustingforPurchasingPowerParity)islNRl'gpertonperkm2,almostdoublethat of USA.

ln addition, the average  speed of freight  vehicles  on lndian  roads is about  25 - 30 km/hd3),  which is s0  -  60% lower as compared to usA, adding to the freight cost' Whilefactorsliketopographydoplayaroleindailydistancecovered,themagnitude of difference  is indicative  of the inefficiencies  present in logistics  movement  in lndia' ln addition,  variability  and  unpredictability  of time required  for freight movement  adds to the logistics  problem. Moving across  the same route has time variability  as high as 15\_2[o/o3.  Further,  there is a -5O%  variability  in average  speed  across  lndian states(withaveragespeedsrangingfrom3T-40km/hrinstateslikeGujaratand RajasthantolS.20km/hrinstateslikeorissaandWestBengal),drivenby differences  in infrastructure  and documentation  complexity'  This results  in a need for higher inventory  holding  across  the supply  chain,  in turn further increasing  the logistics costs.

Higherlogisticscostsinlndiaareprimarilydrivenbyfivekeyfactors

## 1.1 Unfavorable inter-modalmix

r L L-t r-^:^r-+ of 2x Roadtransportinlndiacarries-600/ooftotalfreightmovement\_aJump comparedto20yearsagoa.Coastalmovementandinlandwaterwaysareinits nascentstagesandhence,theonlyviablealternativetoroadfreightmovementin the immediate  term is to move  freight  by rail. ln spite  of lower freight  cost of rail

lAsperlslDreportonFreightLogistics..andlntermodaltransportation,TCl-lIMCreporton Operational rrri'i"t'i"or  r;;f,i;';Jp"::1:"" bv road  in lndia'  2014-'15 intelviews

4  OECD  Database,  World  Bank

2  For a 20 MT  payloai  truck; Eottom,rp  .orti.tg  d'"veloped Lut:O:l-ou"sporter 3  For  a non-express  logistics  player. s"r"a  .;'GPS .at  colected  on different  routes  and rransporter interviews

compared to road (45% cheaper than road freight  on a per ton  per km basis)s' adoptionofrailforfreightmovementhasbeenlimited'primarilydrivenby:

- oAdversepricingandrakebookingpoliciesadoptedbytherailways
- .Lackofintermodalfacilitiestoenableeasyfreighttransferbetweenrail androad,neededtoensureseamlessfirstmileandlastmileconnectivity.

## 1.2 lnefficient  fleet mix

- lndia,s  fleet mix is characterized  by Smaller, inefficient  trucks.  Historically,  16T and 25T GVW trucks have been the highest selling categories  in lndia' as compared to china where 26-39.9T truck categories  lead the market'  Trucks with higher payload  are more efficient than the trucks with lower  payloads  (Freight cost on a pertonperkmbasisforagMTtruckislNR3.56,2.5xthatfora40MTtruck). Absenceoflogisticshubstoactaszonesforfreightconsolidationand disaggregationresultsinhigherpointtopointfreightmovementonlowersized vehicles,  compared to more efficient  line haulfreight'

## 1.3 Under-developed  material handling infrastructure

- Warehousing  landscape in lndia  is cf,aracterized  by the presence of large number of  private/  unorganized  warehouses,  with an average  size significantly  lower than that  of USA. Unorganized  and fragmented  nature of the industry  has resulted  in smaller  sized warehouses  with very low investment  in this sector'Adverse  banking policies(limitationsinhighertenureloansforwarehouses)andtheindirect taxationongoodsmovement,restrictslargersizedandconsolidatedwarehousing withmechanizedmaterialhandlingfacilities.Smallersizedunorganized warehouses  with limited  mechanization  results  in higher storage and handling losses,therebyincreasingthesupplychaincosts.

## 1.4 Under-developed  road infrastructure

- Limited  p,","n"u  ol 4 l  6lane  national  highways  adds to the freight  transit times andhencethefreightcost.lnaddition,inconsistentinfrastructurealongkeyroutes addstocongestiononlndianroads.Also,lndiaranks6lintheglobalroadquality

5  Bottom  up costing developed  based on transporter  interviews;  Comparison  is for average  freight transportation.t"  uf"Ji"lou"ting ft: :::t iiff"'"tttt'  between different  huck sizes

6  Bottom  up costing  ieveloped  based  on transPorter  interviews

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.competitivenessassessmentbytheWorldEconomicForum,indicatingtheneed for better  quality roads  to ease movement  across  corridors'

## 1.5 Procedural  comPlexities

Documentation  and procedural complexities  related  to toll collections'  inter-state freight movement  and EXIM  impact  the time taken  for freight movement  in lndia' leading  to a time  loss of  15o/o of the trip timeT on key freight  routes,  hence adversely  impacting the freight cost'

Developing  multimodal  logistics  parks will address  three of the aforementioned  five issues viz., unfavorable  modal mix, inefficient  fleet mix and under-developed material handling  infrastructure.  lmpact  of multimodal  logistics  parks on lndia's  freight transportation  have been  detailed  in the subsequent  sections'

## 2ProPosal

Developmentofmultimodallogisticsparkisproposedtoimprovethelogistics efficiency  of the country,  enabring  reduction  in rogistics costs.  rt is proposed  to develop logistics  parks in 15 cities  with highest  freight  movement  (covering  more  than  40o/o of the total road freight  movement  in lndia)8  in Phase  I of the  program' Logistics  parks  in the next 20 nodes  (accounting for -2Oo/o  of the total road freight  movement  in India) canpotentiallybedevelopedinthenextphase.DetailsofpotentiallocationsforPhase I of the  program are  provided in Annexure  1'

These multimodal  logistics  parks are expected  to serve  four key functionalities  as highlighted  in the figure  below

ffihansPorterinterviews;lncludesonlytheEnginetimeanddoesn,t include  the driver  rest  time splarudng Commission  -^ i.fffS  Total Transport  System  Srudy(2008)  updated  for FY15 and proiected

for  FY 25

Figure  1 : Key  functionalities of  /ogist'bs  parks

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## 2.1 Freight aggregation  and distribution

- Logistics  parks act as hubs for freight movement  enabling  freight  aggregation  and distribution.  Logistics  parks willtypically  be developed  outside  the zones of urban agglomeration.  Freight  from  production zones will be shipped  to nearby logistics parks,whereitwillbeaggregatedandshippedtoalogisticsparknearthe consumption  zone on a larger sized vehicle' Freight arriving  at the destination logistics  park will be disaggregated  and distributed  to the consumption  zones insidethecity.Logisticsparksactingasfreightaggregationanddistributionhubs enable line haul freight  movement  (between  hubs)  on larger sized trucks  and thereby aiding in reduction  of freight  transportation  cost'

## 2.2 Multimodal  f reight trans  portation

- Logistics Parks  with road and rail connectivity  enable  multimodal  freight transportation. This aids freight transportation  on line haul  (between  hubs)  to shift from road to rail and waterways  (wherever  possible),  thereby reducing  the freight cost.  ln addition,  completion  of the  proposed  raildedicated  freight  corridors  (Delhi toMumbai,LudhianatoKolkata)andfocusondevelopingCoastalandlnland

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Waterwayswillaccelerateadoptionofrailandwaterwaysforfreightmovement resPectivelY'

- ?TJ,:fl :";:,["J:]?H'l3o*n mech  an ized  wa rehousins  space,  satisfvins  the specialrequirementsofdifferentcommoditygroups\_Forexample,Logistics parkswillprovidecoldstoragefacilitiesrequiredforperishables,racked warehousing  Space  for storing  palletizable  cargo  (Eg. Parcel,  apparel,  etc'). With higherproportionofmechanizedmaterialhandling,warehousinginlogisticsparks will reduce storing  and handling  losses'

'  ^ "r:xi:,l:i:1;"j;.;iiorio"  varue added  services  such as customs  crearance  with bondedstorageyards,warehousingmanagementservices,etc.Customs clearanceatlogisticsparksenablethewaitingtimereductionattheportsand therebyreducethefreighttransportationcostandtimeforexportcargo'

with the aforementioned  functionalities'  logistics  parks will be attractive  for industries andcommoditieswithahigherproportionofBusinesstoConsumer(B2C)freight movement,whichneedsfreightaggregationanddistribution.Detailsofadoptionof logisticsparksfordifferentcommoditiesbasedonattractivenessofvalueproposition provided  by logistics  parks are highlighted  in Annexure  2'

## 3 ExPected  benefits  and Gosts

- '''  =-n:["i:::;rt':,,* reduction in overa,  rreight  cost bv enablins  rreisht transportationonhighersizedtrucksandrail'lnaddition,Iogisticsparksenable reduction  in vehicutar  poilution and congestion  in key cities.

LogisticsparksareexpectedtoprovidefourkeybenefitsaSsummarizedbelow

- i.Transportationcostreduction:Logisticsparkswilldrive-10%reductionin transportation  cost for the top 15 nodes  by enabling  freight movement  on higher sizedtrucksandrail'Largersizedtruckshave-60%lowerfreightcostgonaper

e  Bottom  up costing  developed  based  on transPorter  interviews

- ton  per km basis compared  to lower sized trucks.  Further,  freight  cost  by rail is -4go/olower  on a per ton  per km basis compared  to average  road  freight  cost'1o
- ii.  pollution reduction:  lncreased  freight movement  on higher  sized trucks  and railwillenablein-]2o/oreductioninCozemissionsforthetopl5nodes.Higher sizedvehicles'onaccountoflowerfuelconsumptionpertonperkm,willresult inlowerCozemissions.Further,freightmovementbyrailhas-65%lowerCoz emissions  compared  to road freight  on a per ton  per km basis' similarly'  there willbeacorrespondingreductioninPM,CoandHC+Noxemissions,drivenby increased  freight  movement  on higher sized vehicles  and rail'
- iii.Congestionreduction:lncreasedfreightmovementonhighersizedtrucksand rail will result in -Z1%reduction  in freight  vehicles  catering  to the demands  of thetopl5nodes.lnaddition,shiftingwarehousesandwholesale markets,currentlybeingoperatedinsidethecity,tologisticsparkswouldfreeup urban  spaces,  enabling  congestion  reduction'
- iv.Warehousingcostreduction:Shiftingwarehouses,currentlybeingoperated insidecitylimits,tologisticsparkswillenablereductioninwarehousingcost, drivenbylowerrentalsinlogisticsparkssituatedoutsidethecitylimits.ln addition,modernandmechanizedstoragesolutionsprovidedbylogisticsparks willenablereductioninstorageandhandlinglosses.

## 3.2 ExPected  costs

Developmentoflogisticsparksinthetopl5nodeswillrequirecapitalinvestment of-lNR33,000croresforlandacquisition,constructionofstoragespaceand developmentofalliedinfrastructure.Abroadestimateofcapitalrequirementfor landacquisition,constructionofstorageSpaceanddevelopmentofallied infrastructure  are  provided below

10  ComParison  i, ro. ",","g-" r.eight  transportation cost  by road accounting  for cost differences  between different  ffuck  sizes

- i.Landacquisition:Atotalof-4,s00acresllisneededfordevelopmentof proposedl5multimodallogisticsparks,includinglandforstoragespace,allied infrastructure,  trunk  infrastructure  and land for future expansion'  A total  cost of -lNR  10,700  crores  will be needed  for land acquisition'
- ii.Developmentofstoragearea:-2,000acres(-87Mnsq.ft.)ofstorageSpace willbedevelopedintheproposedl5logisticsparks.Thiswiltincludeopen storagerequiredforhandlingbulkcommodities,closedstoragerequiredfor handlingbreakbulkcommodities(primarilyFMCGandwhitegoods)and specializedstoragerequiredforhandlingperishables.Atotalcostof-lNR 10,40012  crores  will be required  for development  of storage  space'
- iii.Developmentofalliedinfrastructure:Developmentofalliedinfrastructure includingintermodalarea,vehicleparkingandservicearea,commercialspace' restaurants,driverrestingareas,fuelstations,etc.intheproposedlogistics parkswillrequire-1,600acres(outofthetotal4,300acres).lnaddition,-1,200 acreswillbealtottedfordevelopingtrunkinfrastructure,landscapingandland allocationforfuturedevelopment.ConnectivitytotheadjacentNationalHighway andraillineneedstobeestablished.Atotalcostof-lNR11,800croreswitlbe requiredfordevelopmentofalliedinfrastructureandestablishingconnectivityto nearest  National  Highway  and rail line'

Detailsofthecostestimatesforthel5proposedlogisticsparksareprovidedin Annexure  3

of development  based oJ"ntn*uiks  from DMICDC' 1r  Bottom  up estimate  for storage  areas;  Benchmarks  from  the Detailed  Prolect  Report  prepared  for  the *f*ulfu i:**i'l::#nfi*iq?'Lnmentsourcesandotherrearestatepravers;cost

## 4 Potential  financing  mechanism

Amulti-modalcompany(MMc)isenvisagedtomanagedevelopmentofLogistics parks.TheMMCisexpectedtobeundertheaegisofMinistryofRoadTransport andHighways(MoRTH),andwillhavevaryingrepresentationandequityfrom National  Highways  Authority of lndia  (NHAI), lndian Railways  (lR)' Airports Authority  of lndia  (AAl), lnland  waterways  Authori$ of lndia (lwAl) and lndian Ports Association  (lPA). The MMC will also be responsible  for institutionalizing partnerships  with other  Government  entities,  as required  (such as DFCCIL' DMICDC,AKIC,CBIC,PCPIR,CoNcoRl3,etc.).Foreachoftheparks,the development  can be done  through  two potential modes:

- i.Landownershiprestingwithgovernment\_lnthiscase,theMMCwillforma joint  venture  (JV) with the state  government  -  this JV will be responsible  for earmarking  and  purchasing  the land for developing  the logistics  park' as well as for providing the trunk infrastructure  (road connectivity,  power, Sewage,  water,  etc.). This JV will form spv with a private  players (PPP) for development  and construction  of the  park  -  the  private  players  are expected  to be responsible  for the development  & constructionand will need to provide for funding  of the same throughequity/debt\_theguidelinesfordebtvsequitywillbeprovidedbythe MMC to ensure sufficient  focus  from the  players'
- ii.Landownershiprestingwithprivateplayers-lncaseswherelargeland owners are interested  in setting up a logistics  park, an sPV between  the MMC andtandowner(inselectcases,sPVmayalsoincludestategovernment)can beformed.Theprivateplayerwillberesponsiblefortheequityinvestmentin form of land,  while the MMC  (including state  government'  if involved)  will take chargeofdevelopmentoftrunkinfrastructure(roadconnectivity,power'Sewage' water,etc.)'Theprivateplayermaybeallowedtosell/develop&leasea percentageoflandparcelinreturnforhisequityinvestment-therestofthe

ffiustriaICorridorDeve1opmentCorporation,AKIC-AmritsarKolkata Industrial  Corridor, csii---ih"..ai  Bangalore"i"J"titi"r Corridor'  DFCCIL  -  Dedicated  Freight Corridor  Corporation  orlrraiu  iirrrited, pCp-IR  p"t  oluum,  Chemicals  and Petrochemicals  Investment Region

.logisticsparkdevetopmentcanbedevelopedthroughanotherSPV,formedwith other Private  PlaYers'

## 5 KeY Success  Factors

Logisticsparkswillneedtobesupportedbyinvestmentsinalliedroadandrail infrastructure  and  complementary policy to improve the business  viability  and  to ensurerealizationofprojectedbenefits.Alistofkeysuccessfactorsarehighlighted below

- iii.Connectivitytoadjacentnodes:Abititytocatertothedemandofadjacent nodes will improve  the business  viability of  proposed logistics  parks'  For instance,theproposedlogisticsparkinDelhi-NCRwillneedtocatertothe freightdemandofadjacentdistrictsuchasSonipat,inadditiontocateringtothe demandofDelhi,Gurgaon,Faridabad,GhaziabadandNoida.ltwillbecritical toensureseamlessconnectivityfromthelogisticsparktotheseadjacentnodes.
- iv.Noncompetinginfrastructure:Governmentcanpotentiallyrestrictapprovals forestablishingrailconnectivityandcustomsclearancepostsinlogisticsparks/ similarinfrastructureinthevicinityofproposedlogisticsparks,toimprovethe viability  and attractiveness  of  proposed  logistics  parks' ln addition'  strong coordinationisessentialacrossmultiplegovernmententitiesdevelopingsimilar infrastructure-ForEg.DelhiMumbailndustrialDeveloprnentCorporation (DMlcDC),DedicatedFreightCorridorCorporationoflndiaLimited(DFCCIL) and CONCOR'
- v.competentseruiceproviders:Abilitytoattractworldclass3PLservice providersfordevelopingandoperatingthelogisticsparkswillbecriticalto ensuresuccessofthelogisticsparks.Highservicelevelswillbeessentialto ensure higher adoption  of logistics  parks  amongst  end  users'
- vi.Gomplementarypolicies:Existingpoliciesonmultimodalfreightmovement (MultimodaltransportofGoodsAct,lgg3)caterprimarilytoExportandlmport Cargo.Thereisnocomprehensivepolicytogoverndomesticmovementof

freightonmultiplemodes.Formulti-modaltransportationofdomesticfreight, serviceprovidersaregovernedbypoliciesandregulationsofrespective transportationmodes'whichmaydifferacrossmodes.Therequirementsfor qualificationasMultimodaltransportoperatorsinthecurrentactarevery stringent(requirementofglobalpresenceinatleast2countries,minimum turnover of INR 50 Lakhs, etc.)laand  would  exclude  domestic  players  from operatingmultimodalfreightlines.lnaddition,financingfordeveloping warehousesandlogisticsparksarenotinlinewithotherinfrastructureproducts, restricting  the tenure  of loans  for development  of warehousing  infrastructure'  A comprehensivepolicygoverningmultimodalfreighttransportationfordomestic freight movement  needs  to be developed'

- vii. Early  involvement  of all stakeholders:  Early  involvement  and alignment  of all relevant  stakeholders  will be critical to ensure  faster development  of logistics parks.AlignmentwithMinistryofRailwaysiscriticaltoensurernulti-modalityat logisticsparks.lnaddition,coordinationwithCentralBoardofCustomsand ExcisewillbeessentialfordevelopingCustomsclearancepostswithinlogistics parks.Also,earlyalignmentwithothergovernmentagenciessuchasDMICDC' AKlc,cBlC,PCPIR,DFCCILandcoNcoRlswillbeessentialtoensurethat infrastructureisbeingestablishedinalignmentwiththeneedsofrelevant stakeholders.lnaddition,inputsfromendusers\_3PLserviceproviders,user industries  will be essential  to finalize  the design  of the multimodal  logistics  parks'

## 6 Next StePs

A detailed  technical  assessment  is needed  to finalize  the investments  and business  of logistics  parks once the land  parcels  are identified.  ln addition,  a Separate  entity  to focus  on multimodal  freight  movement  with involvement  from Ministry  of Railways  and othergovernmententitiesfocusedoninfrastructure(DMlCDc,AKlC,CBICetc.)will

i:Yil,i6"3i'J:iliil"ifJ":ilff#ll3:lidor Deveropment  Corporation,  AK,C  -  Amritsar  Korkata Industrial  Corridor,  CBrc  --'i;;ai Bangalore"i"i"tiil"r  Corridor'  DFCCIL  -  Dedicated  Freight Corridor  Corporation "r iiai"ii*i,"a, pcp"tn  p"iJ",r*, Chemicals  and Petrochemicals Investment Region

ensure  focus  on the initiatives.  A list of next steps identified  have  been  highlighted below

- i.Settingupofamultimodalcompany:Settingupamultimodalcompanywith participationfromMinistryofRoadTransportationandHighways(MoRTH)' MinistryofRailwaysandMinistryofShippingisneededtoensurefocusand accountability.  tn addition,  the company  will be responsible  for institutionalizing partnershipswithotherGovernmententitiesundertheaegisofdifferent ministries  -  DFCCTL'  DMICDC'  AKIC'  CBIC'  PCPIR'  CONCOR'  etc'
- ii. Land  parcel identification  for development  of logistics  parks: Exact  land parcels need to be identified  for development  of the  proposed  15 multimodal logisticsparksincoordinationwiththeStateGovernments.lnaddition,theland acquisitionmodelneedstobefinalizedfortheidentifiedlandparcels.
- iii.Finalizationofbusinesscase:Adetailedfinancialassessmentneedstobe conductedtorefinethecostestimatesandthebusinesspotentialofthe proposed  logistics  parks' once the land  parcels  are identified'
- iv.Finalizationofbusinessmodel:ownershipandoperatingmodeloptions (GovernmentownedandoperatedvsPPPvsPrivateownership)needstobe finalizedbasedonthetechnicalassessmentandbusinesscase.

## Ahnexure  {: Locations  identified  for logistics  parks

The following  nodes  have been identified  for development  of multimodal  logistics  parks in the Phase  1 of the  Program

| Delhi- NCR (Delhi, Gurgaon' Ghaziabad' Faridabad' Noida)    |
|-------------------------------------------------------------|
| Mumbai(Mumbai'Mumbaisuburbs'JNPT'MumbaiPort'RaigadDistrict) |
| North Gujarat (Ahmedabad and Vadodara)                      |
| South Gujarat (Surat and Bharuch)                           |
| South Punjab (Ludhiana' Sangrur' Patiala)                   |
| North Punjab (Amritsar, Jalandhar' Gurudaspur)              |

## Ahnexure  2: Attractiveness  of value  proposition  of logistics  parks for different  commodities

Details  of adoption  of logistics  parks for different  commodities  based  on attractiveness of value  proposition  p'oiiO"O by logistics  parks are listed  below

| SNo   | Commodities            | lndustrY                    |              |        |
|-------|------------------------|-----------------------------|--------------|--------|
| 1     | Containers             | Containers                  | Containers I | High   |
| 2     | Provisions & Housenoto | FMCG                        | Break Bulk   | High   |
| 3     | Edible Oils            | FMCG                        | Break Bulk   | High   |
| 4     | Milk & Products        | Other agriculture           | Perishables  | High   |
|       | Parcels, Misc          | ffir manufactured oroducts  | Break Bulk   | High   |
| 5     | & Structures           | Construction                | Break Bulk   | Medium |
| b     | Cement                 | Grain                       | Dry Bulk     | Medium |
| 7     | Rice                   | Grain                       | Dry Bulk     | Medium |
| 8     | Wheat                  |                             | Dry Bulk     | Medium |
| 9     | Grams & Pulses         | Grain                       | Perishables  | Medium |
| '10   | Fruits & Vegetables    | Other aqriculture           | Break Bulk   | Medium |
| 11    | Cotton                 | Other agriculture           |              |        |
| 12    | Wood/ PlYwood          | 6ih6 rnanufactured oroducts | Break Bulk   | Medium |
| 13    | Paper and Products     | Other manuracrut oroducts   | Break Bulk   | Medium |
|       | Electrical Goods       | Other manuractut Drooucls   | Break Bulk   | Medium |
| v 15  | Chemicals              | Chemicals                   | Break Bulk   | Low    |
| 16    | Building Material      | Construction                | Dry Bulk     | Low    |
| 17    | Granite/ Marbles       | Construction                | Dry Bulk     | Low    |
| 18    | lron & Steel           | Metal industries            | arear auk    | i r-o* |
|       | Machinery              | Otie-rmanufactured oroducts | Break Bulk   | Low    |
| 19    | HeavY                  | EnergY                      | Dry Bulk     | Nil    |
| 20    | Coal                   |                             | Liquid Butk  | Nil    |
| 21    | POL                    | EnergY                      | Dry Bulk     | Nil    |
| 22    | lron Ore               | Metal industries            |              |        |

## Annexure  3: Details logistics Parks of cost estimates  for  proposed 15 multimodal

Details  of land  requirement  and for the  proposed  logistics  parks is highlighted  below

| S.No.   | Logistics Park Location   | Land ,"qrit"*"nt (acre)   | Area for storage(acre I   | Area for allied infrastructure (acre)   | Area for "JJ,tfft" and landscaPing (acre)   |
|---------|---------------------------|---------------------------|---------------------------|-----------------------------------------|---------------------------------------------|
| 1       | Delhi- NCR                | 856                       | 357                       | 285                                     | 214                                         |
| 2       | Mumbai                    | 813                       | 339                       | 271                                     | 203                                         |
| 3       | North Gujarat             | 488                       | 203                       | 163                                     | 122                                         |
| 4       | Hyderabad                 | 295                       | 123                       | 98                                      | 74                                          |
| 5       | South Gujarat             | 279                       | '116                      | 93                                      | 70                                          |
|         | South Punjab              | 226                       | 94                        | 75                                      | 57                                          |
| 6       |                           |                           | 111                       | 89                                      | 67                                          |
| 7       | North Punjab              | 267                       | 82                        | 66                                      | 49                                          |
| I       | Jaipur                    | 197                       | 127                       | 102                                     | 76                                          |
| I       | Kandla                    | 305                       | 52                        | 42                                      | 31                                          |
| 10      | Bangalore                 | 125                       | 71                        | 57                                      | 43                                          |
| 11      | Pune                      | 171                       |                           | 68                                      | 5'1                                         |
| 12      | | vilaYawaoa         | 203                       | 84                        |                                         | bo                                          |
| 13      | Cochin                    | 2U                        | 110                       | 88                                      |                                             |
| 14      | Chennai                   | 153                       | 64                        | 5'1                                     | 38                                          |
| 15      | NagPur                    | 174                       | 72                        | 58                                      | 43 ,i1;, 1,26i[,,                           |

:

Details  of project cost  required  for land logistics  Parks  is listed below acquisition  and development  of  proposed

| S .No.   | Los'stics Park   | Total Cost of t?fI"" rlNR Crl   |       |        |       |
|----------|------------------|---------------------------------|-------|--------|-------|
| 1        | Delhi- NCR       | 6,321                           | 3,118 | 1,985  | 1,218 |
| 2        | Mumbai           | 5,8'18                          | 3,251 | 1,395  | 1,172 |
| 3        | North Gujarat    | 2,668                           | 732   | 1 ,105 | 831   |
| 4        | Hyderabad        | 2,036                           | 502   | 706    | 828   |
| 5        | South Gujarat    | 1,579                           | 335   | 632    | 611   |
| 6        | South Punjab     | 1,505                           | 221   | 529    | 755   |
| 7        | North Punjab     | 1,704                           | 261   | 644    | 799   |
| I        | Jaipur           | 1,344                           | 375   | 443    | 525   |
| 9        | Kandla           | 1,791                           | 370   | 582    | 838   |
| '10      | Bangalore        | 1,137                           | 188   | 300    | 649   |
| 11       | Pune             | 1,381                           | 290   | 394    | 697   |
| 12       | Vijayawada       | 1,372                           | 147   | 494    | 731   |
| 13       | Cochin           | 1,488                           | 320   | 372    | 795   |
| 14       | Chennai          | 1.419                           | 382   | 359    | 678   |
|          |                  | 1,292                           |       | 418    | 700   |
| 15       | Nagpur           |                                 | 174   |        |       |

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