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Development of Haryana Freight Village approved

Cabinet sanctions Rs.1,029.49 Cr for Phase I

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The Cabinet Committee on Economic Affairs has approved the Freight Village, an Integrated Multi Modal Logistics Hub (IMLH), at Nangal Chaudhary in Haryana.

Located on 886.78 acres of land, it is to be implemented by the project Special Purpose Vehicle (SPV) in two phases.

The committee has approved financial sanction of Rs.1,029.49 crore for development of Phase I and in principle approval for development of Phase II of the project.

Expenditure on Phase I comprises cost of entire land at Rs.266 crore including cost of the land to be used for development of Phase II.

It has also approved investment of Rs.763.49 crore by National Industrial Corridor Development and Implementation Trust (NICDIT) which includes of Rs.266 crore as equity and Rs.497.49 crore as debt in the SPV.

The development will be on Engineering, Procurement and Construction basis under the SPV.

Phase I will be implemented by financial year 2020-21.

Phase-ll of the project will be reappraised in 2028 or earlier, if so required, for suitable financial sanctions.

The Indian government through NICDIT and Government of Haryana through HSIDC have set up a 50:50 SPV named “DMIC Haryana Multi Modal Logistic Hub Project Limited”.

The Freight Village will be connected through Western Dedicated Freight Corridor (DFC) at Dabla, which is at a distance of approximately 10 kms.

The logistics hub integrated with the DFC would have the following components:

i. High speed connectivity to key ports and Industrial Centres;
ii. Lower cost of supplying goods – faster freight operations & removal of multiple handling costs;
iii. Improved service quality;
iv. Real time freight tracking and data analysis;
v. Single-point solution to all logistics need like loading/aggregation/packaging/ storage;
vi. Speedy access to ports from hinterland;
vii. Economy of scale in supply chain operations with reduced cost and time of operations;
viii. Last mile gateway port connectivity from the hinterland;
ix. Contain unorganized growth of container freight stations.


The government is developing the Delhi Mumbai Industrial Corridor, as a global manufacturing and investment destination of around 1,504 km long Western Dedicated Freight Corridor (DFC) as the backbone.

Investment Regions and Industrial Areas have been identified for development in this corridor, across six States namely Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh.

Haryana is a major industrial and trading hub in North India. Potentially high rate of industrial development has to be supported through additional infrastructure to handle the transport of raw material and manufactured goods.

Haryana is expected to witness container traffic of about 10 Million Twenty Foot Equivalent Unit (TEUs) by 2025.

Hence, development of a Freight Village in Mahendragarh district of Haryana has been considered necessary to achieve the following objectives:

i. Improving efficiency of operations of existing industries in the region as well as attractiveness of the region as an investment destination for various categories of industries, warehousing and logistics operators;
ii. Tapping potential traffic along the Western DFC and of Northern states which is likely to galvanise rail-based freight movement with high-end operational features of faster and high-capacity freight trains. It will serve as a world-class multi modal facility that provides for efficient storage/transitioning of goods to/from DFC, thereby catering to the escalated freight traffic;
iii. Offering an attractive destination to freight companies and customers to boost industrial development in the region and creating economic opportunities. The facility will not only house standard container handling activities but will create various value added services.

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