New Delhi, May 16 (UNI) The Cabinet Committee on Economic Affairs (CCEA) on I'Vednesday approved the proposal of the Department of Industrial Policy and Promotion (DIPP) for Development of Freight Village—an Integrated Multi Modal Logistics Hub (IMLH)— at Nangal Chaudhary village in Haryana.

The project to come out on 886.78 acres of land will be implemented by the project Special Purpose Vehicle (SPV) in two phases.

The CCEA at its meeting here chaired by Prime Minister Narendra Modi also approved ?nancial sanction of Rs 1029.49 crore for development of Phase I a11d in- principle approval for development of Phase II of the project.

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 CCEA approved an investment of Rs 763.49 crore by National Industrial Corridor Development a11d Implementation Trust (N ICDIT) which includes of Rs 266 crore as equity and Rs 497.49 crore as debt in the SPV and bidding for trunk infrastructure development by SPV on EPC basis.

The proposed development of a Freight Village as Multi Modal Logistics Hub is estimated to generate over 4000 direct and 6000 indirect employment. Job creation will not be limited to core logistics facilities but would also entail opportunities for entire logistics supply chain. The construction of trunk infrastructure will be undertaken in two phases. Phase I will be implemented by financial year 2020-21.

The award of various construction packages will be made in a manner so that the entire construction of trunk infrastructure gets completed simultaneously.

Phase-ll of the project will be reappraised in 2028 or earlier, if so required, for suitable financial sanctions.

For implementation of proposed Freight Village, an SPV has been incorporated as a 50:50 Joint Venture of Government of India through NICDIT and Government of Haryana through HSIDC under the name "DMIC Haryana Multi Modal Logistic Hub Project Limited".

"The Freight Village will be connected through 'Western Dedicated Freight Corridor. “The project has enormous economic value i11 terms of direct and indirect benefits and multiplier effects 011 the economy. The economic benefits of the project will include creation of employment, reduction i11 fuel costs, boosts to exports, reduction in vehicle (trucks) operating cost, reduction in accident related costs, increase in collection of taxes by the State Government, reduction in pollution, etc,” an official statement said.

Government is developing the Delhi Mumbai Industrial Corridor, as a global manufacturing and investment destination around 1,504 km long Western Dedicated Freight Corridor (DFC) as the backbone. Investment Regions and Industrial Areas have been identified for development in this corridor, across six States namely Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh.

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