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14/11/22 12:22 PM IST

Reliance to develop multi-modal logistics park in Tamil Nadu

In News 
  • Reliance Industries Ltd (RIL) has been awarded the work to develop the first multi-modal logistics park (MMLP) at Mappedu in Thiruvallur district of Tamil Nadu.
About the project 
  • The Union Ministry of Road Transport and Highways (MoRTH) had awarded RIL the contract to set up India’s first multi-modal logistics park (MMLP) close to Chennai.
  • The Rs.1,424 project will be implemented under the PM Gati Shakti National Master Plan, which was launched in October 2021.
  • The model concession agreement for this project is on a Design, Build, Finance, Operate, and Transfer (DBFOT) model.
  • The total concession period for the project is 45 years.
  • The MMLP will be developed in 3 phases with the estimated developer investment of Rs.783 crore.
  • The first phase will be completed by 2025.
Significance 
  • India’s first MMLP is being set up in Mappedu village in Thiruvallur district, near the automobile and electronics manufacturing clusters on the Sriperumbudur-Oragadam industrial belt.
  • The project will also cater to the secondary market clusters of Ranipet, Ambur, Tirupur and Bengaluru that hosts leather, heavy machinery parts, automobiles, cement, sugar and chemical industries.
  • It is at the strategic location at around 52 km from Chennai port, 80 km from Ennore Port and 87 km from Kattupalli Airport.
  • It is situated near the Chennai Peripheral Ring Road (CPPR), that connects to the Chennai Airport and also the Kamarajar and Kattupalli ports in Chennai.
  • The park will act as the focal point of logistics in the southern region of India.
Need of MMLP 
  • The MMLP ensures improved multi-modal connectivity and last-mile connectivity across India.
  • It will facilitate efficient, cost-effective and value-added logistics services like cargo aggregation and disaggregation, distribution, inter-modal transfer, sorting, packing, repacking and others.
  • The reduction of logistics costs is critical for the Indian economy. Currently, India’s logistics cost as a percentage of GDP is at 16 per cent. In developed countries like the United States and European countries, it is just around 8 per cent. In China it is 10 per cent. The Indian Government is currently targeting to reduce the logistics cost to 10 per cent of the GDP.
Source- Live Mint 

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