Question : Multi-modal Logistic Park

(a) the details of approval given by the Government for setting up of a multi-modal logistic park in Hyderabad;
(b) whether India‘s logistic costs can be compared with other advanced countries and if so, the details thereof along with the efforts being made to bring down the said cost;
(c) the anticipated reduction in the logistic costs from the existing 13-15 per cent after setting up of logistic parks;
(d) the time by which logistic park in Hyderabad is likely to be completed; and
(e) whether there is any impact due to Covid Pandemic on the said logistic park and if so, the details thereof?

THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS
(SHRI NITIN JAIRAM GADKARI)
(a) Cabinet Committee on Economic Affairs (CCEA) in October 2017 had approved Bharatmala Pariyojana comprise of 34,800 Km of Highways in the entire country with investment of Rs. 5.35 lakhs crores. The Bharatmala Pariyojana also covers development of Multi Modal Logistics Parks (MMLP) in the entire country and MMLP Hyderabad is included in the list of 35 MMLPs.
(b) Logistics cost in India is 13-14% of GDP compared to 8-9% in developed countries such as US. Multiple initiatives have been taken by Govt. of India to improve logistics efficiency in the country such as:
i. Development of MMLPs across 35 strategic locations to enhance the efficiency in the logistics sector. These 35 MMLPs are expected to cater about 50% of the road freight movement. These MMLPs are expected to enable seamless intermodal freight transfer and serve as major cargo consolidation and distribution hub. This will enable more efficient freight movement in the country, thereby resulting in lower logistics cost and time. List of 35 MMLPs is provided in Annexure - I.
ii. Under Bharatmala Pariyojana, 34,800 km of highway/ Expressways are included which are expected to carry 70-80% of freight movement in the country.
iii. The PM Gati Shakti - National Master Plan has been launched recently for holistic monitoring and review of multiple infrastructure projects that are expected to boost logistics efficiency. It also includes dynamic Geographic Information System (GIS) based ERP platform planned in collaboration with Bhaskaracharya National Institute for Space Applications and Geoinformatics (BISAG-N) for coordinated program review. Integrated approach to infrastructure development will enable economic growth and increase cost competitiveness of the Indian products in the global markets.
(c) Multimodal Logistics parks are expected to enable seamless transfer of goods across different modes of transport, thereby enabling a hub and spoke model of freight movement with hub-to-hub line haul on more efficient modes such as rail/ ocean/ inland waterways or larger sized trucks and first mile/ last mile movement on trucks. Multi-Modal Logistics Parks (MMLPs) are also expected to provide key services such as advanced storage infrastructure, and value-added services such as customs clearance and provisions for late-stage processing activities. These MMLPs are aimed to improve logistics efficiency & reduction in logistics costs. However, the degree of reduction anticipated in logistics cost is dependent on multiple factors such as vehicle fleet mix and efficiency, strength of infrastructure connectivity (road/ rail/ shipping/air), supply chain efficiency brought by multiple players, etc. and hence cannot be assessed at this stage.

(d) The MMLPs are to be developed in collaboration with the State Government. For MMLP Hyderabad, MoU has been signed with State Government (TSIIC) on 09th August, 2021. The work for DPR preparation for MMLP Hyderabad has been started and based on availability of land with the State Government DPR activities will be concluded. These MMLPs are to be developed on PPP Mode and Phase-1 thereof will be completed within 2 years from start of construction.

(e) No Sir.