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  • DAILY CURRENT AFFAIRS:Tripartite agreement for development of modern Multi Modal Logistics Parks under Bharatmala Pariyojna Signed

Tripartite agreement for development of modern Multi Modal Logistics Parks under Bharatmala Pariyojna Signed

Tags: National Economy/Finance

In an effort to expedite the development of the modern Multi-Modal Logistics parks under the Bharatmala Pariyojna a tripartite agreement was signed between three Union Government institutions in New Delhi on 24 August 2022.

Agreement between institutions 

  • The tripartite agreement was signed by National Highways Logistics Management Limited (NHLML), Inland Waterways Authority of India (IWAI) and Rail Vikas Nigam Limited (RVNL).
  • The NHLML is a Special Purpose Vehicle (SPV) of National Highway Authority (NHAI) of Ministry of Road Transport & Highways while IWAI is a statutory authority under Ministry of Ports, Shipping & Waterways. 
  • The RVNL is a wholly owned Public Sector Enterprise under the Ministry of Railways.  

Aim of the agreement 

The objective of the agreement is to centralize freight consolidation and reduce logistics cost from 14 per cent to less than 10 percent of GDP at par with International Standards.

Multi Modal Logistics Parks (MMLP)

  • Multi modal transport means that goods are transported by at least two different modes of transport under the control or ownership of a single operator. It could include transportation of goods through rail, road, waterways or air. 
  • MMLP will be a freight handling facility with rail and road accessibility, comprising of container terminals, cargo terminals (bulk, break-bulk), warehouses, cold storage, facilities for mechanised material handling and value-added services such as customs clearance with bonded storage yards, quarantine zones, testing facilities and warehousing management services etc. along with other associated facilities.
  • The MMLPs will focus on a technology driven implementation for a state-of-the-art freight management system. 
  • Many value added services like packaging, repackaging and labelling will be available in these projects.

Bharatmala Pariyojna 

  • It was launched by the Union government on 31 July 2015.
  • It is a new umbrella program for the highways sector that focuses on optimizing efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps through effective interventions like development of Economic Corridors, Inter Corridors and Feeder Routes, National Corridor Efficiency Improvement, Border and International connectivity roads, Coastal and Port connectivity roads and Green-field expressways.
  • The project is being implemented by the Union Ministry of Road Transport and Highways.

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