The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the setting up of an integrated multi-modal logistics hub on 886.78 acres in Nangal Chaudhary area in Mahendragarh district of Haryana.
The hub will be a part of the 1,504-km High-Capacity Western Dedicated Freight Corridor between Delhi and Mumbai, Law and Information and Technology Minister Ravi Shankar Prasad told reporters after the Cabinet meeting.
He said that the Haryana government had provided land for the project while the central government had given financial sanction of Rs 1,029.49 crore for the first of the three phases of the project which will be implemented by financial year 2020-21.
An official statement said that the CCEA had also given in-principle approval for the development of Phase II.
"The expenditure on Phase I comprises cost of entire land at Rs 266 crore, including land cost for Phase II as well," it added.
Prasad said that in order to effectively operationalise the freight corridor, there is a need for logistics hubs, which the government has dubbed as "freight villages".
The government said the project will lead to creation of employment, reduction in fuel costs, boost exports, reduction in vehicle-operating costs, reduction in accident-related costs, increase in collection of taxes by the state government and reduction in pollution.
The proposed development of a freight village as the logistics hub is estimated to generate over 4,000 direct and 6,000 indirect jobs.
Job creation will not be limited to the core logistics facilities but also entail opportunities for the entire logistics supply chain, it said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)