CCEA Approves Development Of Freight Village At Nangal Chaudhary In Haryana
2018-05-16 Announcements Transportation Services Northern India
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval to the following proposal of the Department of Industrial Policy and Promotion:-
i. Development of Freight Village, an Integrated Multi-Modal Logistics Hub (IMLH), Nangal Chaudhary, Haryana on 886.78 acres of land to be implemented by the project Special Purpose Vehicle (SPV) in two phases.
ii. The financial sanction of Rs. 1029.49 crore for development of Phase I and in principle approval for development of Phase II of the project. Expenditure on Phase I comprises the cost of entire land at Rs. 266 crores including the cost of the land to be used for development of Phase II.
iii. Investment of Rs. 763.49 crore by National Industrial Corridor Development and Implementation Trust (NICDIT) which includes of Rs. 266 crore as equity and Rs. 497.49 crore as debt in the SPV; and
iv. Bidding for trunk infrastructure development by SPV on EPC basis;
The project has enormous economic value in terms of direct and indirect benefits and multiplier effects on the economy. The economic benefits of the project will include the creation of employment, reduction in fuel costs, boosts to exports, reduction in the vehicle (trucks) operating cost, reduction in accident-related costs, increase in collection of taxes by the State Government, reduction in pollution, etc.
The proposed development of a Freight Village as Multi-Modal Logistics Hub is estimated to generate over four thousand direct and six thousand indirect employment. Job creation will not be limited to core logistics facilities but would also entail opportunities for entire logistics supply chain.
1. The construction of trunk infrastructure will be undertaken in two phases. Phase I will be implemented by the financial year 2020-21.
2. The award of various construction packages will be made in a manner so that the entire construction of trunk infrastructure gets completed simultaneously.
3. Phase-ll of the project will be reappraised in 2028 or earlier, if so required, for suitable financial sanctions.
4. For the implementation of proposed Freight Village, an SPV has been incorporated as a 50:50 Joint Venture of Government of India through NICDIT and Government of Haryana through HSIDC under the name "DMIC Haryana Multi Modal Logistic Hub Project Limited".
The Freight Village will be connected through Western Dedicated Freight Corridor (DFC) at Dabla, which is at a distance of approximately 10 km. This logistics hub integrated with the DFC would have the following components:
i. High-speed connectivity to key ports and Industrial Centres;
ii. Lower cost of supplying goods - faster freight operations & removal of multiple handling costs;
iii. Improved service quality;
iv. Real-time freight tracking and data analysis;
v. Single-point solution to all logistics need like loading/aggregation/packaging/ storage;
vi. Speedy access to ports from hinterland;
vii. The economy of scale in supply chain operations with reduced cost and time of operations;
viii. Last mile gateway port connectivity from the hinterland;
ix. Contain unorganized growth of container freight stations.