17 May 2018

The Pioneer

Centre Approves Freight Village Project at Hry'S Nangal Chaudhary

Centre Approves Freight Village Project at Hry'S Nangal Chaudhary

The Union Cabinet has given its nod for the development of Trunk Infrastructure Components for Integrated Multi Modal Logistics Hub known as “freight village” at Nangal Chaudhary in district Mahendergarh of Haryana under Delhi Mumbai Industrial Corridor Project.

The proposed development of a freight village as Multi Modal Logistics Hub is estimated to generate over 4,000 direct and 6,000 indirect employment.

This was informed by Haryana Chief Minister, Manohar Lal while addressing a press conference here.

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has given its approval to this proposal of the Department of Industrial Policy and Promotion, he said.

The development of Freight Village, an Integrated Multi Modal Logistics Hub (IMLH), Nangal Chaudhary, Haryana on 886.78 acres of land will be implemented by the project Special Purpose Vehicle (SPV) in two phases. Financial sanction of Rs 1,029.49 crore has been given for development of phase I and in principle approval for development of phase II of the project, said the Chief Minister.

He said that expenditure on phase I comprises cost of entire land at Rs 266 crore including cost of the land to be used for development of phase II. The investment of Rs 763.49 crore would be made by National Industrial Corridor Development and Implementation Trust (NICDIT) which includes of Rs 266 crore as equity and Rs 497.49 crore as debt in the SPV. The Bidding for trunk infrastructure development would be made by SPV on Engineering, Procurement and Construction (EPC) basis.

The project has enormous economic value in terms of direct and indirect benefits and multiplier effects on the economy.

The economic benefits of the project will include creation of employment, reduction in fuel costs, boosts to exports, reduction in vehicle (trucks) operating cost, reduction in accident related costs, increase in collection of taxes by the State Government and reduction in pollution, said Manohar Lal.

The construction of trunk infrastructure will be undertaken in two phases. phase I will be implemented by financial year 2020-21. The award of various construction packages will be made in a manner so that the entire construction of trunk infrastructure gets completed simultaneously.

The phase-ll of the project will be reappraised in 2028 or earlier, if so required, for suitable financial sanctions.