Govt gives nod to Freight Village at Nangal Chaudhary, Haryana
By TIOL News Service
NEW DELHI, MAY 16, 2018: THE Cabinet Committee on Economic Affairs, chaired by the PM Modi has given its approval to the proposal of the Department of Industrial Policy and Promotion for development of Freight Village as an Integrated Multi Modal Logistics Hub (IMLH) at Nangal Chaudhary, Haryana on 886.78 acres of land. The project would be implemented by the project Special Purpose Vehicle (SPV) in two phases.
The Cabinet also sanctioned Rs 1029.49 cr for development of Phase I and also grant in principle approval for development of Phase II of the project. Expenditure on Phase I comprises cost of entire land at Rs 266 cr including cost of the land to be used for development of Phase II.
Apart from that, the Cabinet also approved the investment of Rs 763.49 cr by National Industrial Corridor Development and Implementation Trust (NICDIT) which includes Rs 266 cr as equity and Rs 497.49 cr as debt in the SPV.
The project has enormous economic value in terms of direct and indirect benefits and multiplier effects on the economy. The economic benefits of the project would include creation of employment, reduction in fuel costs, boosts to exports, reduction in vehicle (trucks) operating cost, reduction in accident related costs, increase in collection of taxes by the State Govt and reduction in pollution. The proposed development of a Freight Village as Multi Modal Logistics Hub is estimated to generate over four thousand direct and six thousand indirect employment. Job creation would not be limited to core logistics facilities but would also entail opportunities for entire logistics supply chain.