Fate of Logistics park, Greenfield airport in upcoming session; MP positive it'll be a new dawn for Barak Valley

Union Finance Minister Nirmala Sitharaman is “in principle” okay to sanction funds for setting up a Multi Modal Logistics Park in Barak Valley. Silchar MP Rajdeep Roy, who recently met the Finance Minister, announced the same in a press conference. 

The member of parliament is leaving for Delhi to take part in the upcoming session of the Lok Sabha. Today, he disclosed that the Union FM had asked him about the significance of Barak Valley and why it deserves a Multi Modal Logistics Park. One MMLP is already under development in Assam’s Jogighopa and according to Roy the Finance Minister, after the discussion with the Silchar MP, sees merit in developing another one in Barak Valley. 

MMLP needs to stay connected with large roadways, waterways, railways and airways. Its purpose is to provide effective and affordable shipping solutions to a large worldwide network. Experts of Asian Development Bank that did the feasibility studies estimates employment opportunities (direct and indirect) for at least 10,000 individuals in each of these parks. The MP said that he has also had a discussion about Greenfield Airport which was earlier approved by the former Aviation Minister.

“See, both these projects are important and the ball remains on the honourable Finance Minister’s court. She needs to approve the funds and after my recent meeting with her, I am hopeful that these projects will be materialised. If the two large projects are completed, it will be a new dawn for Barak Valley,” added the MP. 

He informed that 127 bigha land has been earmarked for the development of Multi Modal Logistics Park and for the Greenfield Airport, a team of experts has identified three plots and submitted a report to the Aviation and Finance Ministries.

The MP said he intends to raise key issues related to Barak Valley in the upcoming Parliament session. Connectivity and border dispute with Mizoram are a few of the issues that he said he has in mind.

In 2017, the Government of India launched a program to develop 35 MMLPs across the country. Nitin Gadkari’s ministry invited Asian Development Bank (ADB) to provide necessary support as the lead partner. ADB then conducted a pre-feasibility study to assess the suitability of MMLPs in the vicinity of Bengaluru (Karnataka)and Guwahati (Assam) and identify the requisite infrastructure, connectivity, and regulatory reforms.

In 2018, ADB supported the pre-feasibility study for an MMLP in Jogighopa, Assam (about 150 km from Guwahati), which incorporates rail, road, and inland waterway connectivity. The Government of Assam approved the land and the project has been incorporated.

Multi-Modal Logistics Park (MMLP) is a project under the Ministry of Road, Transport and Highways, Government of India’s Logistics Efficiency Enhancement Programme (LEEP). Nitin Gadkari’s ministry undertook the project to improve the country’s logistics sector by lowering overall freight costs, reducing vehicular pollution and congestion, and cutting warehousing costs. To be specific, the government says these parks will serve five key functions: freight aggregation and distribution, multimodal freight transport, integrated storage and warehousing, information technology support, and value-added services.

Logistics in India is estimated to be a $215 billion industry in 2020. It is projected to expand through 2032 at a rate that is roughly 1.2 times the growth rate of India’s gross domestic product (GDP) and generate $360 billion in value-added.

However, in its current form, the think-tanks find it as a system structured around outdated models which makes it highly inefficient. Skewed modal transport mix, where 60% of freight moves by road, which is significantly larger than in many developed economies. Coastal movement and inland waterways are at a nascent stage. Rail transport is marginal, in spite of being 45% cheaper per ton-km than road, due to adverse pricing and rake booking practices and lack of intermodal facilities to enable easy transfer. Then underdeveloped material handling infrastructure where most of the warehousing is unorganised and inefficient fleet mix.

Barak Valley is the nodal point for multiple states in the Southern part of Northeast India. With trains reaching Myanmar borders and potential extension to Thailand and China, it opens up new avenues for trade and commerce. Barak Valley is connected to Bangladesh too and overall it is ripe enough to draw profits from an MMLP. Will it get one? The region will get a clarity in the upcoming session.