Transport Summit to draw Rs 2 lakh crore investment: Nitin Gadkari
Investments to the tune of Rs 2 lakh crore are expected during the India Integrated Transport and Logistics Summit beginning here today with 20 pacts in advanced stages, Union Minister Nitin Gadkari said here on Wednesday.
The three-day summit will see participation from leading highways and shipping players from Singapore, Hong Kong and Abu Dhabi, including the DP World.
"We are expecting to draw investments worth Rs 2 lakh crore during the summit in which various transport ministries including Road Transport and Highways, Shipping, Railways and Aviation are coming on a single platform for the first time," Gadkari said while addressing the media after inaugurating an exhibition here.
The Road Transport and Highways minister said that 20 pacts are in advanced stages of finalisation among different government agencies including National Highways Authority of India (NHAI), CONCOR, Major Port Trusts, Land Ports Authority of India, Central Railside Warehousing Company and different state governments.
The summit is in line with governments plans to have an effective multi-modal logistics and transport sector to make Indian economy more competitive.
The minister said that the government plans to bring down logistics costs drastically to enhance exports and create huge employment.
The road transport and highways ministry plans to build 35 multi-modal logistics parks (MMLP) in the country which will cater to 50 per cent of the freight movement, enable 10 per cent reduction in transportation costs and 12 per cent reduction in carbon dioxide emissions.
Land parcels have been already identified and pre-feasibility studies initiated on six of these locations.
The parks will be developed jointly by NHAI, National Highways Infrastructure Development Corporation (NHDICL) and the respective state governments.
The government is also working on formulating an uniform policy for the development of MMLPs.
The government has identified sites for the proposed 35 logistics parks to be set up on railways, highways, inland waterways and airports transportation grid.
Fifteen such logistics parks will be constructed in the next five years, and 20 more over the next 10 years and these will act as hubs for freight movement enabling freight aggregation and distribution with modern mechanised warehousing space.
An official said that a joint venture will be set up between NHAI and the partner which could be a state government, with 49 per cent and 51 per cent stakes respectively.
Of the total land acquired for the project, 40 per cent will be developed and returned to the land owner, as per governments plan.
Of the remaining land, 20 per cent will be sold to finance the project while the profit from the rest 40 per cent will go to the NHAI.
The Road Transport and Highways Ministry has also sought infrastructure status for these logistics parks.