The Cabinet Committee on Economic Affairs today approved the 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 Project, a statement said.
The trunk infrastructure components include roads and services, building complex,
water, sewage and common effluent treatment plant.
The development of the Freight Village in Haryana will be on a 886.78 acres of land plot which will be implemented by the project Special Purpose Vehicle (SPV) in two phases.
A financial sanction of Rs. 1029.49 crore for development of Phase I and in-principle approval for development of Phase-II of the project has also been given by the CCEA, the statement said.
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 statement said.
The CCEA has also approved 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.
The $100-billion Delhi-Mumbai Industrial Corridor, conceived in 2006 by the then Prime Minister Manmohan Singh as a global manufacturing and investment destination, by utilising the high capacity 1,483 kilometer long Western Dedicated Freight Corridor (DFC), as the backbone, 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 project has enormous economic value which 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, 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 analysisl, last mile gateway port connectivity from the hinterland and other advantages.
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