Multi Modal Logistics Hub Worth ₹5,942 Cr Cleared for Dadri, Greater Noida.

The National Industrial Corridor Development Corporation Ltd (NICDC) has received the green light from a key government panel for the construction of a ₹5,942 crore Multi Modal Logistics Hub at Dadri in Greater Noida. The project is slated to be developed with private funding.

Spanning across 334 hectares, the proposed logistics hub is designed to feature mechanized warehouses, specialized storage solutions, and advanced mechanized handling and intermodal transfer facilities for container, bulk, and break-bulk cargo. It will also provide value-added services, including cross-docking, customization, stacking, and labelling.

The facility is planned for construction in three phases and is projected to handle 1.44 million twenty-foot equivalent units (TEUs), 7.8 million tonnes (mt) of non-containerized cargo, and offer 3 million sq ft of warehousing and 0.3 million sq ft of cold storage capacity.

According to project details cleared by the Public-Private-Partnership Appraisal Committee (PPPAC), chaired by Ajay Seth, Finance and Economic Affairs Secretary, Ministry of Finance, on May 2, the project will be awarded to a private firm through a bidding process. The selection will be based on the highest Minimum Guaranteed Revenue (MGR) share offered to NICDC over a concession period of 45 years, which includes a two-year construction phase. The project is expected to receive approval from the Union Cabinet shortly.

Under the revenue-sharing model, if the actual gross revenue in any given year surpasses the projected MGR, the private operator will pay the authority the agreed revenue share percentage on the surplus. Conversely, if the revenue falls short of the MGR, the private firm is obligated to pay the full MGR, thereby guaranteeing a baseline revenue for the authority. Gross revenue, in this context, refers specifically to the amount received by the private operator from its sub-licensees, excluding revenue generated by sub-licensees from their own customers. The authority's revenue share is calculated solely on the concessionaire's direct receipts, with sub-licensing limited to warehousing and commercial activities, accounting for approximately 19 percent of the revenue stream.

While the private operator will bear the ₹5,942 crore construction cost of the logistics hub, the project implementing authority will fund the expenses related to land acquisition, land levelling for the rail yard, external connectivity, and power connectivity to the facility, estimated at ₹2,337 crore. The Greater Noida Industrial Development Authority has already acquired over 90 percent of the required land for the project.

A commitment has been made to ensure that rail and road connectivity to the facility will be completed one month prior to the commencement of commercial operations.

The project also incorporates enhanced conditions compared to the standard Model Concession Agreement (MCA) for Multi Modal Logistics Parks. The lock-in period for the project promoter's equity has been set at two years, as opposed to the usual six months. Furthermore, the period for evaluating the technical capacity of bidders has been extended to 10 years, compared to the five-year period stipulated in the model request for proposal (RFP). Rajat Saini, CEO and MD, NICDC, informed the PPPAC meeting that these enhanced requirements were included "in view of the project’s scale and complexity."

To attract bidders, the authority has also provided an assurance that it will not develop a competing logistics facility within a 100 km radius of the Dadri hub for a period of ten years from the date of commercial operations.

The proposed logistics hub boasts a strategic location with integrated connectivity across all major transport modes. It is situated at the intersection of the Eastern and Western Dedicated Freight Corridors and is directly linked to NH34, the Eastern Peripheral Expressway, and the upcoming Jewar International Airport. "Together, these linkages make the logistics hub a one-stop freight destination for the National Capital Region and its hinterland," stated the NICDC CEO and MD.

The rail authority is tasked with developing the rail siding to ensure uninterrupted, high-capacity connectivity within the logistics hub. The Delhi-Mumbai Industrial Corridor will construct 17 internal tracks and associated systems like signalling, while the private operator will be responsible for maintaining the siding. According to a document reviewed by ET Infra, "By providing an integrated dry port facility for efficient storage and transshipment of goods to and from the Uttar Pradesh segment of the National Capital Region, the logistics hub will help these corridors realise their full operational potential."

The private firm that wins the contract through a global tender will be responsible for the development, operation, maintenance, and management of the logistics hub, including the commercial area and ancillary facilities. Equipped with modern storage and aggregation capabilities, export-import services, and value-added amenities, the logistics hub is expected to significantly boost regional industrial efficiency and attract further investments.