The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, Mr Narendra Modi, has given its approval to the following proposal of the Department of Industrial Policy and Promotion:
Development of Freight Village, an Integrated Multi Modal Logistics Hub (IMLH), at Nangal Chaudhary, Haryana on 886.78 acres of land, to be implemented by the project Special Purpose Vehicle (SPV) in two phases.
Financial sanction of Rs 1,029.49 crore for development of Phase I and 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.
Investment of Rs 763.49 crore by National Industrial Corridor Development and Implementation Trust (NICDIT), which includes 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 project has enormous economic value in terms of direct and indirect benefits and multiplier effects on the economy. The economic benefits will 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 government, reduction in pollution, etc.
