Centre’s Rs 270 crore boost to Dobbespet logistics project

Traffic congestion on Tumkur Road.

In a move that could go a long way in easing congestion on Tumkur Road (NH 48), the Centre has given a big push to the multi-modal logistics park (MMLP) by releasing Rs 270 crore to complete the land acquisition process.

The MMLP near Dobbespet is expected to reduce pressure on the Tumkur Road by cutting off inter-state cargo trucks at Dobbespet. The cargo is then shifted to trains with a 6.5-km railway track connecting the MMLP with Doddabele station.

Officials said shifting the cargo to electrified railway lines not only reduces the number of goods vehicles entering Bengaluru by 50 per cent to 60 per cent but also helps check pollution. “It will also make the cost of transportation affordable and reduce the duration,” a senior official said.

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The Infrastructure Development Department had proposed the project in 2017, noting that the lack of a logistics hub was curtailing the growth of several sectors, including e-commerce and automobile industries, as dependence on road transport for inter-state cargo was proving unviable.

The Karnataka Industrial Area Development Board (KIADB) has notified the 400 acres required for the project and acquired part of it by paying a compensation of Rs 100 crore to farmers. The land is being invested by the state and central agencies as equity.

“The KIADB board has reserved the remaining funds which will be disbursed in the coming days. Now that the funds have come from the Ministry of Road Transport and Highways (Morth), land acquisition will not face any delay. The entire parcel of 400 acres will be handed over for civil work in a few months,” an official said.

The National Highways Logistics Management Limited will call the tenders for the civil work, expected to cost about Rs 1,519 crore. The park will be built by a private company under the design, build, finance, operate and transfer model.

“The construction work is likely to take more than a year. The private player will share the revenue with public entities. The Railway Vikas Nigam Limited will get a share of the revenue for building the tracks to the logistics park,” another official said.