India’s First MMLP

Reliance Industries Limited (RIL) is going to develop India’s first multi-modal logistics park (MMLP) near Chennai, 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.

Where is India’s first MMLP situated?

  • 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.
  • To further boost the connectivity, a special purpose vehicle, having National Highways Logistics Management, Rail Vikas Nigam, Chennai Port Authority and Tamil Nadu Industrial Development Corporation, was set up. The SPV will provide:
  1. 4-lane national high-way connectivity of 5.4 km at an estimated cost of Rs.104 crore
  2. A new 10.5 km long rail siding to the MMLP site at the estimated cost of Rs.217 crore.
  • It park will cater to around 7.17 million tonnes of cargo in over 45 years.

Why does India need MMLPs?

  • The MoRTH is developing 35 MMLPs. Of these, 15 are prioritized for the next 3 years.
  • 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.



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