Multi-Modal Logistics Park Policy: UP’s Game-Changer for Logistics

WhatsApp Channel Join Now
Telegram Channel Join Now

Uttar Pradesh’s Multi-Modal Logistics Park Policy 2024 is transforming the state’s logistics sector with a new hub in Greater Noida’s Dadri. Spanning 174 acres, the park aims to boost connectivity, reduce costs, and enhance efficiency. Backed by incentives, it targets global competitiveness, supporting India’s logistics growth to $650.52 billion by 2028.

UP’s Logistics Revolution Through Multi-Modal Parks

Uttar Pradesh is poised to redefine its logistics landscape with the implementation of the Multi-Modal Logistics Park (MMLP) Policy 2024, a strategic move to bolster the state’s role in India’s burgeoning logistics sector. The policy’s flagship project, a 174-acre MMLP in Dadri, Greater Noida, is set to become a pivotal cargo hub in the National Capital Region (NCR). Positioned adjacent to a 250-acre Inland Container Depot (ICD) operated by the Container Corporation of India (CONCOR), the park leverages seamless connectivity to the Eastern and Western Dedicated Freight Corridors (DFCs). This strategic location enhances its potential to streamline freight movement, reduce logistics costs, and elevate the global competitiveness of local industries.

The MMLP Policy 2024, approved by the Uttar Pradesh cabinet, introduces a slew of incentives to attract private investment. These include tax breaks, land allocation benefits, and streamlined regulatory processes, aimed at fostering public-private partnerships (PPPs). The policy aligns with India’s broader logistics reforms, such as the National Logistics Policy (NLP), which seeks to slash logistics costs from 14–18% of GDP to 7–8%. By integrating road, rail, and port connectivity, the Dadri MMLP is expected to optimize supply chains, particularly for last-mile and intra-city deliveries, addressing key bottlenecks in the sector.

See also  Uttar Pradesh Bolsters Aerospace and Defence with Aatmanirbhar Push

India’s logistics sector is witnessing robust growth, with deal values soaring to $609.7 million in the first half of 2025, an 85% increase year-on-year, driven by mergers, acquisitions, and tech-led investments. Uttar Pradesh’s MMLP initiative taps into this momentum, emphasizing sustainability and digitalization. The park will feature low-emission facilities and AI-powered Warehouse Management Systems (WMS) to enhance inventory efficiency and reduce dwell times. These advancements are critical as the sector grapples with rising freight costs and environmental pressures, with road freight accounting for 40% of India’s transport emissions.

The Dadri MMLP is part of a broader national push, with 35 MMLPs under development across India at a cost of ₹50,000 crore. Uttar Pradesh’s proactive approach positions it as a frontrunner, alongside states like Gujarat, which is developing a 30-acre MMLP in Morbi to connect to ports like Mundra and Pipavav. The UP government’s focus on cluster-based logistics hubs near industrial corridors is expected to boost MSME productivity, which employs 80% of India’s manufacturing workforce and contributes 40% to sectoral output. A 10% reduction in logistics costs could increase India’s exports by 5–8%, per the Federation of Indian Export Organisations (FIEO).

Challenges remain, including land acquisition delays and bureaucratic hurdles, which have slowed similar projects nationwide. Only 1,724 km of the planned DFC network has been completed, and many MMLPs are still in early stages. However, UP’s policy framework, coupled with digital platforms like the Unified Logistics Interface Platform (ULIP), aims to mitigate these issues by enhancing real-time visibility and regulatory integration. The state’s investment in tech-driven logistics, including IoT-enabled EVs and route optimization, aligns with India’s goal of a $650.52 billion logistics market by 2028.

See also  Uttar Pradesh Bolsters Higher Education with New Universities

The Dadri MMLP is also expected to catalyze job creation and skill development, addressing gaps in the MSME sector. With 88% of manufacturers scaling up operations due to infrastructure-led confidence, as per a Cushman & Wakefield report, Uttar Pradesh’s logistics push is set to drive economic growth. The state’s integration of green logistics, such as EV adoption and carbon-neutral warehousing, further underscores its commitment to sustainability, balancing cost efficiency with environmental responsibility.

Disclaimer: This article is based on recent news reports, industry analyses, and government announcements. Data is sourced from credible publications, including Hindustan Times, The Economic Times, and logistics industry insights. Readers are advised to verify real-time developments through official channels.

WhatsApp Channel Join Now
Telegram Channel Join Now

Leave a Comment