Multi-Modal Logistics Park in Varanasi

• 17 Mar 2025

Why in News? 

 An Memorandum of Understanding (MoU) was signed  between National Highways Logistics Management Limited (NHLML) and Inland Waterways Authority of India (IWAI) to develop a state-of-the-art Multi-Modal Logistics Park (MMLP) at Varanasi 

Key Points 

• About MMLP: 
  • Objective:  
    • It aims to strengthen the supply chain by seamless freight movement through road, rail and water routes, reducing costs and increasing business efficiency. 
  • Significance and Impact: 
    • Spread over 150 acres, the park will have direct connectivity to NH7 and Eastern Dedicated Freight Corridor (EDFC) , making freight transportation smooth and affordable. 
    • Connectivity with National Waterway-1 (NW-1) will facilitate cargo transportation through waterways , thereby reducing transportation costs . 
    • The construction of this logistics park will attract significant investments , which will give a boost to the economy of Uttar Pradesh. 
    • Traders, industries and MSMEs will benefit at local and national level , leading to increased production and exports . 
    • This project will generate direct and indirect employment opportunities at the local level . 
    • The logistics sector will be modernized , which will pave the way for developing such centres in other cities in the future. 
    • It will act as a model under the Gati Shakti scheme and multi-modal connectivity, promoting such projects in other states as well. 

 Inland Waterways Authority of India (IWAI) 

• IWAI is a statutory body under the Ministry of Shipping . 
• It develops and maintains inland water transport infrastructure on national waterways through grants received from the Ministry of Shipping. 
• The Authority has its head office at Noida (Uttar Pradesh) with regional offices at Patna, Kolkata, Guwahati and Kochi and sub-offices at Prayagraj (formerly Allahabad), Varanasi, Bhagalpur, Rakka and Kollam. 

 Prime Minister's Gati Shakti scheme 

• Objective: To ensure integrated planning and implementation of basic infrastructure projects over the next four years with a focus on accelerating work on the ground, reducing costs and creating employment. 
  • The Gati Shakti plan subsumes the Rs 110 lakh crore ' National Infrastructure Pipeline ' launched in the year 2019 . 
  • Apart from cutting logistics costs, the scheme aims to increase cargo handling capacity and reduce turnaround time at ports to boost trade. 
    • It also aims to build 11 industrial corridors and two new defence corridors (one in Tamil Nadu and the other in Uttar Pradesh). Under this, 4G connectivity will be expanded to all villages.  
    • Also, a plan is being made to add 17,000 km of capacity to the gas pipeline network. 
• Integrated Approach: It entails bringing together 16 ministries dealing with infrastructure. 
• Gati Shakti Digital Platform: It involves creation of an umbrella platform through which basic infrastructure projects can be created and implemented effectively through real-time coordination between various ministries/departments.