Recently, a tripartite agreement was signed by the Government of India to fast-track the creation of modern Multi-Modal Logistics Parks (MMLP) under the Bharatmala Pariyojna across India. The purpose behind this initiative is to consolidate freight centrally, which will eventually help lower logistical costs from 14% to below 10% of GDP, aligning with international standards.
Understanding the Tripartite Agreement
The signatories of this agreement are National Highways Logistics Management Limited (NHLML), Inland Waterways Authority of India (IWAI), and Rail Vikas Nigam Limited (RVNL). The NHLML is a Special Purpose Vehicle (SPV) of the National Highway Authority (NHAI), a part of the Ministry of Road Transport & Highways. On the other hand, IWAI is a statutory authority functioning under the Ministry of Ports, Shipping & Waterways, and RVNL is a wholly owned Public Sector Enterprise coming under the Ministry of Railways.
The collaboration among these three entities aims for better efficiency in countrywide logistics movement. Seamless modal shift and MMLPs ensure that cargo can be shifted to and from waterways, Dedicated Freight Corridors, and Road Transport.
Defining the Multi Modal Logistics Park (MMLP)
The MMLP operates on a ‘Hub & Spoke’ model that connects different modes of freight transport, including highways, railways, and inland waterways. This project aims to create large-scale, technologically advanced warehousing facilities for various commodities and related services like warehousing, custom clearance, truck maintenance, etc. It includes facilities such as railway siding, cold storage, custom clearance house, workshops, petrol pumps, administrative building, and more.
The primary focus of the MMLPs is to adopt a technology-driven approach for an advanced freight management system. It offers various value-added services, including packaging, repackaging, and labelling.
About Bharatmala Pariyojna
Bharatmala Pariyojna, designed by the Ministry of Road Transport and Highways, is an umbrella program aimed at enhancing the efficiency of the highways sector. The initiative advocates for the improvement of existing corridors via Multimodal Logistics Parks and elimination of choke points.
One of its key aspects is improving connectivity in North East while also leveraging synergies with Inland Waterways. It also emphasizes technological advancements and scientific planning for project preparation and asset monitoring. For enhanced connectivity, Bharatmala Pariyojna is integrating Bangladesh – Bhutan – Nepal and Myanmar – Thailand corridors to make North East Asia’s hub.
Objectives of Bharatmala Pariyojna
The initiative aims to optimize freight and passenger movement across India by effectively filling critical infrastructure gaps. The interventions include developing economic corridors, inter corridors, feeder routes, national corridor efficiency improvement, border and international connectivity roads, coastal and port connectivity roads, and greenfield expressways.
Economic Corridors are interconnected networks of infrastructure in a geographical area created to stimulate economic development. Greenfield Projects are those carried out on completely vacant sites, starting from scratch. Conversely, Brownfield Projects carry constraints imposed by the site’s current state and might require modification or demolition.
One of the program’s goals is to generate a large number of direct and indirect employment opportunities in the construction and infrastructure sector. It also plans to connect 550 districts across the country through national highway linkages.
Significance of Industrial Corridors in India
Industrial corridors are identifying markers that explain their main characteristics. They are crucial for India’s industrial development, contributing to the country’s economic growth and creating job opportunities.