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'Land acquisition cost for new Delhi-Mumbai expressway to be lower by Rs 20k cr'

Press Trust of India  |  New Delhi 

New alignment for the greenfield Delhi-express highway is likely to reduce land acquisition cost by up to Rs 20,000 crore as the highway will travel through backward and undeveloped areas, said today.

The proposed project will also cut between the two metros by 125 km.

The said as compared to land acquisition cost of Rs 7 crore per hectare for the existing highway between and Mumbai, the new alignment will see land acquisition cost to reduce to Rs 70 to 80 lakh per hectare.

The government has planned to build a new express highway connecting and on a new alignment at a cost of Rs 1 lakh crore.

"Land acquisition for the new Delhi-express highway will cost Rs 16,000 crore to Rs 20,000 crore less. The new alignment will be from Ring Road of to to from where it will reach to Mumbai via Vadodara," the Road Transport & said on the sidelines of an event here.

Addressing an event by of (TCI) for the launch of "Requirements of the Indian Logistics & Warehousing industry and their Customers," Gadkari said not only between both the metropolises will reduce by 125 km after this new express highway but one can reach Mumbai from Delhi in 11 hours on car.

He said the to Mumbai part will be built at a cost of Rs 44,000 crore in five packages and work is likely to begin in a month as tenders have been already out.

The minister said the new express highway will result in reduction of the logistics cost and will develop the socially backward areas in Rajasthan, Gujarat, Haryana, and

The government has plans to build that would be connected to the and will benefit states like and Rajasthan, he added.

"The new alignment of the highway which we made goes from backward areas of and Madhya Pradesh, Gujarat, as well. All backward areas of the four states will develop industrially. There will be poverty alleviation," the minister said.

About logistics, he said the trucks will be able to move faster on the new express highway which will be access-controlled.

"Our problem is our trucks run 200 to 250 km a day. In the US it is 700 to 800 km. Trucks will take 40 per cent time as compared to the existing time, the minister said.

On requirements of the logistics and warehousing industry, Gadkari made it clear that can not be made mandatory and it is up to consumers to decide.

"It is the duty of insurance companies to convince consumers," he said.

and Insurance Institute of has released a joint report on the of India's logistics and warehousing sector.

Exploratory study recommended of cargo by shipper & a comprehensive risk management policy for logistics service providers.

The study by TCI, a multi modal integrated logistics provider was conducted jointly with the Insurance Institute of (III).

The joint exploratory study found that Logistics Service Providers (LSPs) continue to be highly vulnerable due to the often unfair allocation of risk between them and shippers.

The study also suggested that the sector build internal capacity to understand insurance needs, evaluate its own risk capacity, and make informed decisions with respect to in the future.

"Unlike developed economies, all goods being transported are not insured. In fact, and (WSPs), and Transporters end up taking insurance on behalf of their customers for direct cash debits' for significantly high amounts.

"This is a huge cost and the risk impact is not only on large organised players but on the small transporters it is an unbearable risk," Vineet Agarwal, MD-Group said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 17:50 IST