Cabinet nod for development of trunk infrastructure components for 'Freight Village' in Haryana

CCEA nods for development of trunk infra components in Haryana

Cabinet nod for development of trunk infrastructure components for 'Freight Village' in Haryana

May 17, 2018 : The Cabinet Committee on Economic Affairs, chaired by the prime minister Narendra Modi has given  approval for development of trunk infrastructure components for the integrated multi-modal logistics hub known as 'Freight Village' at Nangal Chaudhary in Haryana under the Delhi-Mumbai Industrial Corridor (DMIC) Project. As per a government release, it will be developed on 886.78 acres of land plot through Special Purpose Vehicle (SPV) in two phases.

The components for trunk infrastructure include roads and services, building complex, sewage, water and common effluent treatment plant. A financial sanction of Rs 1,029.49 crore for development of Phase I and in-principle approval for development of Phase-II of the project has also been given by the Cabinet Committee on Economic Affairs (CCEA). The 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 release stated.

An investment of Rs 763.49 crore by the National Industrial Corridor Development and Implementation Trust (NICDIT) which includes Rs. 266 crore as equity and Rs 497.49 crore as debt in the SPV has also been approved by CCEA.

DMIC, a $100-billion project conceived in 2006 as a global manufacturing and investment destination was supposed to be ready by 2017. As of now, the revised targets are 2020-21 for phase-I of the project and Phase-ll of the project will be reappraised in 2028 or earlier.

The economic value of the project includes creation of employment, reduction in fuel costs, boosts to exports, reduction in vehicle (trucks) operating cost, accident related costs, increase in collection of taxes by the state government and reduction in pollution.

The Freight Village will be connected through Western Dedicated Freight Corridor (DFC) at Dabla, which is at a distance of approximately 10 kms. This logistics hub integrated with the DFC would have high speed connectivity to key ports and industrial centres, lower cost of supplying goods, real time freight tracking and data analysis, last mile gateway port connectivity from the hinterland.