Madhya Pradesh: Indore to Get State's First Multi-Modal Logistics Park; Phase 1 By 2025

Construction engineering company G R Infraprojects has won the rights to construct the first Multi-Modal Logistics Park (MMLP) of Madhya Pradesh.

MMLP at Indore is being developed in an area of 255.17 acre near Pithampur in Dhar district of Madhya Pradesh.

The project will be implemented on a design, build, finance, operate and transfer (DBFOT) basis wherein the concessionaire will develop and operate the MMLP at an estimated cost of Rs 1,110.58 crore.

Under the terms of the contract, the developer will complete the project within two years from the appointed date and will operate the MMLP for 45 years.

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

Why Indore?

Indore is known as the commercial capital of Madhya Pradesh and is located at the crossroads of western and central India with good connectivity.

The city 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 and high-quality workforce.

The site is strategically located near Pithampur industrial area, apparel and charma cluster and abutting the Indore Tihi-Dahod rail line as well as proposed Mhow ring road, at 30 km from Indore Airport and Indore city.

SPV Formed

A government SPV is being formed amongst NHLML, Rail Vikas Nigam Limited (RVNL) and Madhya Pradesh Industrial Development Corporation (MPIDC) for the development of the logistics park.

The SPV will provide land for the MMLP, external rail, road connectivity as well as water and power supply. The MMLP is being provided a with four-lane access from Mhow-Neemach four lane state highway and 6.5 km long rail siding from Sagore Railway Station.

Phase-Wise Development

The MMLP will be developed in three phases — Phase I is targeted to be completed in two years, that is, by 2025, leading to commercial operations.

The MMLP will cater to 12.79 million metric tonne (MMT) cargo in the horizon period of 45 years and will give huge boost to the industrial zones in the catchment region such as Indore, Ujjain, Dewas, Dhar, Pithampur, Khandwa and Barwani.

Reducing Logistics Cost

MMLP is an integrated facility within which all activities relating to logistics and the distribution of goods, both for national and international transit can be carried out across multiple modes of transport.

These mega establishments are targeted to reduce logistics costs to 8-9 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.

Catering to 50 per cent of nation's road freight movement, the MMLPs will maximise efficiency of goods movements across the country.

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.

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