The government has raised the concession duration for the proposed Multi-Modal Logistics Parks (MMLPs) under Bharatmala from 30 to 45 years. The ministry of road transport and highways has also revised the bid requirements for these projects, tying them to the guaranteed minimum revenue share.
Extending the concession period was a market requirement. The previous plan was for 30 years, with a 30-year extension option, according to Prakash Gaur, Chief Executive of National Highways Logistics Management Ltd (NHLML). “Interested developers were claiming that because there are three development phases of five years each, they would only get 15 years of operational term for full facilities.” The increased initial concession period is limited to 45 years, but without any further extension. It is estimated that the 35 MMLPs planned across the country will entail a capital allocation of ₹50,000 crore.
