The special purpose vehicle (SPV), is formed under the guidance of the road ministry, focusing to mark the standard costs that are overrunning with the infrastructure projects.
National Highways Authority of India (NHAI) completely owns a special purpose vehicle, known as National Highways and Logistics Management Ltd (NHLML), and is planning to award 15 more contracts on logistics parks in the next three years. These multimodal logistics parks will be in a public-private partnership mode, that means the logistics parks will have a funding model of the ratio 50:50.
The special purpose vehicle (SPV), is formed under the guidance of the road ministry, focusing to mark the standard costs that are overrunning with the infrastructure projects. The reason that leads to cost overruns is the lag of time between the awards of projects and their onset. This particular logistics project is a part of the mega infrastructure project that was launched by the authority this month. This mega infrastructure project will cost around Rs 7 trillion.
The NHAI is an independent agency of the government of India that was setup in the year of 1995. This specific authority is responsible for the creation as well as for the management of a network of more than 50,000 kilometres of National Highways in India.
The reason that leads to cost overruns is the lag of time between the awards of projects and their onset.
The mega infrastructure project is predicted to be a five-corner logistics project, and one of its components is this multimodal logistics park. The other constituents for the project are intermodal stations, optical cable infrastructure, wayside amenities and ropeways.
The Chief Executive Officer (CEO) of NHLML, Prakash Gaur said, “There are 35 multimodal logistics parks that are planned across the nation with an ideal capital allotment of Rs 50,000 crore. Tenders for the cities like Chennai, Bengaluru, Indore, and Nagpur are being issued this financial year. The logistics park in Assam, named as Jogigopha has started construction. This logistics park is in addition to the 15, that are to be awardedâ€.
“We are ready to be prepared with all approvals in place before the project is awarded in terms of land accession, the environment incline, and railways approvals, along with the supply of water and power. From the appointed date, both parties, private as well as the government will have concluded their work to some extent with private players having their technical and financial closure in place. This will help us to ensure there is no lag of time in beginning with projects once they are awarded,†he added.
The CEO also said that there are domestic and international large players, who are participating in the business of logistics parks. However, he has not disclosed any further detail for the same.
About 120 wayside amenities are being awarded in the year of 2022 out of 600, which are planned to be taking place across 22 states of the country. These amenities have been successful to gain the attraction of interest from the operators working at the medium scale and developers, which belong mostly to the domestic region. These wayside amenities are basically the small set-up facilities that are for the ease of sources to the public, including
food courts, washrooms, parking spaces, fuel stations, first aid services and others.
About 120 wayside amenities are being awarded in the year of 2022 out of 600, which are planned to be taking place across 22 states of the country.
