NHLML plans to award 15 multimodal logistics park contracts in 3 years

At least 35 such projects planned across the country with a capital allocation of Rs 50,000 crore, says CEO

National Highways and Logistics Management Limited (NHLML), a 100 percent owned special purpose vehicle (SPV) of National Highways Authority of India (NHAI), plans to award 15 more multimodal logistics parks contracts in three years in public-private partnership (PPP) mode keeping it 50:50 funding model.

"There are total 35 multimodal logistics parks planned across country with capital allocation of Rs 50,000 crore. Tenders are getting issued for Chennai, Bengaluru, Indore and Nagpur this fiscal. The Jogigopha logistics park in Assam already has started construction (this is over and above 15 to be awarded over 3 years)," Prakash Gaur, chief executive officer at NHLML told 'Business Standard'.

The SPV--formed under the guidance of the Ministry of Road Transport and Highways (MoRTH)--aims to address the typical cost overrun scenario with infrastructure projects brought on due to time lag between award of project to commencement of project construction. This logistics project under MoRTH is part of the Rs 7 trillion mega infrastructure project launched last week.

Multimodal logistics parks are part of the five-legged logistics project envisaged with wayside amenities, intermodal stations, ropeways and optical fibre cable infrastructure being part of the same.

"At our end we will be prepared with all approvals in place before the project is awarded in terms of land acquisition, environment nod, railways approvals along with power and water facilities supply. From the appointed date, both parties (private as well as government) will have completed work to some extent with private players having their technical and financial closure in place. This will ensure there is no time lag in commencing projects once awarded," Gaur said.

Gaur informed that all large players are participating for multimodal logistics parks both domestic as well as international without divulging details.

Alongside, of total 600 wayside facilities planned spreading across 22 states, about 120 getting awarded in FY22 are attracting interests from medium scale operators and developers and are mostly domestic players, said Gaur.

Wayside amenities are small set up facilities comprising fuel stations, food courts, parking, washrooms and first aid services.

Apart from this, the ropeway project under NHLML is forming a crucial part of this mega project as it attends to last mile connectivity across the country.

“Ropeways will come where building roads is costly and not very easy. We have identified 20 projects in Himachal Pradesh. These will also serve as urban transport in the region. Places such as Kedarnath and Hemkund should see these project awards in Apr-Jun quarter of FY23,” said Gaur.

In the intermodal stations project, however, NHLML along with other stakeholders (state govt, railways) are likely to have higher share in funding compared to private parties as the core transport facilities—rail, bus, metro will be done by them and the balance commercial aspect will be looked into by private participation.