Concession pact revamped for multi-modal logistics parks to boost ease of doing business

New Delhi: The ministry of road transport and highways has revamped the model concession agreement for multi-modal logistics parks, paving the way for greater role of independent experts.

The latest framework outlines key performance indicators for operations to fast-track development of these parks and quicker resolution of disputes between stakeholders.


The government is developing 35 Multi Modal Logistics Parks (MMLP) in India at some of the highest freight movement regions in the country through the National Highways Logistics Management (NHLML), a 100% subsidiary of the National Highways Authority of India under the ministry of road transport and highways.

A senior government official said the exercise is aimed at enhancing ease of doing business in the country. "Infrastructure development is the priority of the government, and the concession agreements are reviewed from time-to-time to cater to the changing requirements," the official added.

The MMLPs are being developed in hub-and-spoke model to improve the country's freight logistics sector by lowering overall freight costs and time, cutting warehousing costs, reducing vehicular pollution and congestion, improving the tracking and traceability of consignments through infrastructural, procedural, and information technology interventions at various locations.

These are being developed through public private partnership on design, build, finance, operate and transfer (DBFOT) basis.

The inter-ministerial committee with members from the ministry of road transport and highways, NITI Aayog, ministry of finance, department of legal affairs and DPIIT, had over several months deliberated on the changes needed in the MCA after feedback from the stakeholders following which a revised model concession agreement has been rolled out.

The revised MCA also mandates the deployment of robust IT systems for real-time data exchange and compliance with data privacy laws besides emphasizing compliance with environmental protection measures and safety requirements, including appointing a Safety Consultant.

Besides, it lays down specific mechanisms for dispute resolution, including arbitration rules, conciliation, and civil court adjudication for disputes above Rs 10 crore.

As per the amended MCA, an independent expert will be responsible for reviewing drawings, monitoring construction, conducting tests, issuing certificates, and assisting in dispute resolution.

Further, the specific KPIs for operations will include turn-around time for freight trains and penalties for non-compliance, among others.