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Concession period hiked to 45 yrs for proposed multi-modal logistics parks.


Date: 02-06-2022
Subject: Concession period hiked to 45 yrs for proposed multi-modal logistics parks
The government has increased the concession period for the proposed Multi-Modal Logistics Parks (MMLPs) under the Bharatmala scheme to 45 years from 30 years. The ministry of road transport and highways has also changed the bid parameters for these projects and linked those to the minimum guaranteed revenue share.

"Extending the concession period was a market requirement. The earlier plan was 30 years, extendable by another 30 years. Interested developers were saying that since there are three development phases of five years each, they would get only 15 years of operational period for full facilities," Prakash Gaur, chief executive of National Highways Logistics Management Ltd (NHLML), told ET.

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.

Source Name:-Economic Times




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